MASTER 

NEGATIVE 
NO.  94-821 17 


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Author: 


Marsh,  Christopher  C 


Title: 


The  science  of 
double-entry... 

Place: 

New  York 

Date: 

1851 


MASTER   NEGATIVE  « 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION  DIVISION 

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36. 
ONTGOMERr  Marsh,  C[hristopher]  C. 

The  science  of  double-entry  book-keeping,  simplilBed  by 
the  application  of  an  infallible  rule  for  journalizing  ... 
By  C.  C.  Marsh  ...  Rewritten,  enl.,  and  improved,  from 
the  20th  ed.  New  York,  Philadelphia,  Hogan  &  Thomp- 
son, j3.851. 

2i8  p.  incl.  forms.    23i*". 


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LIBRARY 


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DIAGRAM 

liuHoaliu^  the    relnlion  the  Bookg  bear  to  eacli    other;  iuicl  that  tlieir  reeonU.puK^ing  irom  um' to  another.termknatein  the  Le<*ei* 


THE    SCIENCE 


OF 


DOUBLE -ENTRY  BOOK-KEEPING, 


SIMPLIFIED 

BY    THE     APPLICATION    OP    AN 

INFALLIBLE    RULE    FOR  JOURNALIZING: 

CALCULATED  TO  INSURE  A  COMPLETE  KNOWLEDGE  OF 

THE  THEORY  AND  PRACTICE  OP  ACCOUNTS: 

BEING  A  SERIES  OF  WELL-SELECTED    MERCANTILE   TRANSACTIONS,  SO  ARRANGED 

AS  TO  FORM  A  COMPLETE  COURSE  OF  PRACTICE  AND  INSTRUCTION.  AND 

DESIGNED  FOR  THE  USE  OF  SCHOOLS  AND  COUNTING-HOUSES  IN  THE 

UNITED   STATES:   INCLUDING   NUMEROUS   EXAMPLES   OF 

MERCANTILE    CALCULATIONS. 


By  C.  C.  marsh,   Accountant, 

AUTHOR  OF  "SINGLE-ENTRY  BOOK-KEEPING  IMPROVED,"  kc. 


REWRITTEN,    ENLARGED,    AND   IMPROVED,    FROM   THE   TWENTIETH    EDITION, 

■WITH  AN 

ORIGINAL    DIAGRAM. 


iQ 


NEW    YORK: 

PUBLISHED    BY    JOHN'    C.    PwIKER 

315    BROADWAY. 

1857. 


^•^y''<uxUL^ 


^-o 


\; 


H- 


Entered  according  to  Act  of  Congress,  in  the  year  1850, 

By   C.   C.   marsh, 

la  the  Clerk's  Office  of  the  District  Court  of  the  United  States,  in  and  for  the  Southern 

District  of  New  York. 


C^A 


rrKRKOTYPKD    BY    C.   C,    SAVAGE, 
i:»  CliamlnTn  Street,  N.  Y. 


t. 


THIS  VOLUME  IS  RESPECTFULLY 


DEDICATKD 


TO  THE 


CLERKS, 


(tljp  Mm  S^lrrrljnnts,  nf  tljr  Hnitrli  Itntrs, 


WHOSE  INTEGRITY,  AND  ASSIDUITY  IN  THE  PERFORMANCE  OF  THEIR  DUTIES, 
HAVE  LONG  BEEN  WITNESSED  AND  ADMIRED 


By  the  Author. 


INTEEEST  AT  FIVE  PER  CENT.  PERjOTNm 


:< 


August 
Sept. . . 


Oct. 

Nov. 

LDec. 


3H5 

308" 
275 
246 
214 
184 
153 
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365 


EXPLANATION. 
How  many  days  ar.'  tliere  from  Novem- 
ber 1  to  July  1  ?"— Find  November  in  the 
first  column,  and  .lulv  at  the  head  of  tto 
Table,  .vnd  in  the  :m;;le  of  meeting  is  2«2, 
the  number  of  d;i vs  required.  But  if  the 
given  days  he  difterent,  it  is  only  adding 
or  suhtracling  the  difference  ;  .for  in- 
stance, ha<l  the  above  example  been  from 
Novtinber  1  to  July  10,  you  must  have 
added  9  davs  to  the  number  found  in  the 
Table ;  and,  on  the  other  hand,  had  it 
been  from  November  10  to  J"ly,l0^J 
must  have  subtracted  9  days  ;  an       ■■'rf 

every  similar  instance.    In  leap 
February  20  is  included,  you 
day  to  the  number  fouuciiu  ' 


PREFACE. 


The  increase  of  the  trade  and  commerce  of  the  United  States,  consequent  on 
the  increase  of  population,  manufactories,  and  agriculture,  and  the  universal 
confidence  reposed  in  our  political  institutions,  have  called  into  requisition  re- 
newed efforts  in  every  department  of  science  and  literature.  Twenty  years 
ago,  when  the  book  which  is  the  basis  of  this,  was  first  published,  works  on 
book-keeping  were  not  as  common,  nor  so  much  in  demand,  as  they  are  at 
present.  Then,  two  were  supplicating  for  public  patronage ;  now,  more  than 
a  dozen  contend  for  public  favor:  then,  book-keeping  was  little  thought  of  as  a 
branch  of  education  ;  now,  great  exertions  are  made  to  render  a  practical  as  well 
as  a  theoretical  knowledge  of  the  science  attainable  by  study  and  instruction. 

There  are,  perhaps,  no  people  on  the  earth  who  have  more  necessity  for  skill 
and  method  in  arranging  accounts,  than  those  of  the  United  States.  Here  a 
most  wonderful  credit-system  prevails.  It  is  infused  throughout  all  kinds  of 
business,  from  the  largest  commercial  establishment  to  the  smallest  retail  shop 
—  from  the  emporiums  of  the  cities  and  towns  to  the  remotest  trading-house 
on  the  confines  of  civilization.  All  classes  of  society,  and  people  of  all  occupa- 
tions, participate  in  it — the  farmer,  the  mechanic,  the  rich  man  and  the  poor. 
It  animates  the  adventurer,  inspires  the  enterprising,  encourages  the  industri- 
ous, and  establishes  the  emigrant  in  the  west.  It  fortifies  the  farmer  and 
planter  for  a  year's  toil,  and  transports  the  products  of  their  labor  :o  a  market. 
Such  a  system  of  doing  business  is  as  much  the  offspring  of  confidence  and 
good  will  in  man  toward  his  fellow-man,  as  of  capital.  I  truly  believe  that  no 
people  buy  as  much,  consume  as  much,  and  pay  for  as  much,  as  the  people  of 
these  states.  No  one  here  thinks  of  hoarding  money,  and  frw  are  satisfied  to  live 
as  they  have  lived,  or  to  go  on  as  they  began  ;  but  as  sojn  as  they  possess  any 
means  above  their  immediate  necessities,  everything  about  them  is  improved, 
enlarged,  and  even  beautified.  Thus  it  would  seem  that  credit  and  capital  are 
on  a  par,  equally  active  and  never  at  rest. 

Book-keeping  is  so  extensively  required,  that  it  becomes  difficult  to  say  who 
may  not  stand  in  need  of  the  knowledge  embraced  under  its  name.  No  one, 
however,  who  has  even  distant  expectations  of  being  engaged  or  interested  in 
mercantile  affairs,  manufactories,  or  in  joint-stock  companies,  ought  to  omit  to 
make  that  science  a  study.  By  this  I  do  not  mean  that  all  should  or  can  be- 
come book-keepers,  but  that  those  engaged  in  any  kind  of  business,  that  possess 
capital  or  that  control  it,  and  those  who  make  a  profession  of  the  law,  should 
make  themselves  acquainted  with  its  principles  as  a  science,  with  the  names 
and  purposes  of  the  common  account-books,  with  a  systematic  method  of  sta- 
ting accounts,  and  with  the  various  calculations  belonging  to  them.  Unless  they 
do  this,  they  can  not  read  an  account,  much  less  understand  one.  Doct.  Johnson 
says,  in  his  preface  to  Rail's  Dictionary  of  Commerce,  "Let  no  man  enter 
into  a  large  business  while  he  is  ignorant  of  regulating  accounts ;  never  let  him 


% 


1/ 


6 


PREFACE. 


"M 


imagine  that  any  degree  of  natural  abilities  will  supply  this  deficiency  or  pre- 
serve multiplicity  of  affairs  from  inextricable  confusion."  Doct.  Johnson  was 
no  book-keeper,  but  he  knew  enough  of  the  nature  of  accounts  to  convince  him 
that  book-keeping  was  a  science  that  required  to  be  studied  before  it  could  be 
understood,  and  that  the  knowledge  acquired  by  such  study  would  be  of  inesti- 
mable value  to  the  man  engaged  in  business. 

It  may  not  become  the  author  to  descant  on  the  merits  of  other  works  on  the 
subject— that  he  thinks  belongs  to  those  who  are  more  likely  to  look  on  all 
with  an  impartial  eye;  but  he  may,  he  presumes,  without  offence  to  any,  give 
his  views  on  some  of  the  different  methods  of  teaching  book-keeping.  One  of 
the  more  common  presents  the  science  to  the  student  in  such  a  form  that  he 
has  nothing  to  do  but  to  copy  and  commit  to  memory  ;  it  furnishes  him  with  a 
volume  filled  with  account-books  and  general  rules',  and  appears  to  take  for 
granted  that  to  see  the  entries  and  operations,  is  to  understand  them. 

Another  essays  to  teach  the  science  by  an  ingenious  way  of  ruling  the  books, 
and  by  designating  for  what  purpose  are  the  different  columns.  This  plan 
supposes  that  every  one  knows  who  are  the  debtors  and  creditors,  what  is  to 
be  charged  and  what  credited,  and  therefore  furnishes  no  instruction  in  refer- 
ence'thereto. 

Another  proposes  to  accomplish  the  object  by  teaching  a  theory  and  practice 
separately  ;  by  this  plan,  the  pupil  begins  the  study  at  the  Leger,  and  goes 
backward.  In  this  method,  I  think  it  is  asserted  that  you  might  as  well  head 
accounts  in  the  Leger  with  the  words  "  Red"  and  '*  Black,"  as  to  head  them 
with  those  of  Dr.  and  Cr. ;  indicating  that  these  words  have  not  their  usual 
significations  when  applied  to  book-keeping. 

But  the  work  of  all  is,  that  these  and  most  other  methods  teach  that 
one  account  is  debtor  to  some  other  account;  meaning  that  the  accounts 
in  the  Leger  owe  to  each  other.  Nothing,  in  my  mind,  can  be  more  absurd 
than  this;  for,  although  things  may  owe  us,  and  we  may  owe  them,  they 
can  not  owe  each  other.  This  is  an  error  which  relates  directly  to  the  the- 
ory, and  contributes  in  no  small  degree  to  render  the  science  inaccessible. 
Such  a  method  of  teaching  leaves  the  party  most  interested  entirely  out  of 
the  business,  and  substitutes  incomprehensible  suppositions  for  simple  reali- 
ties. The  truth  is,  not  the  accounts,  but  the  objects  which  they  represent,  are 
the  debtors ;  and  not  debtors  to  each  other,  but  debtors  to  the  owner  of  the 
books.  It  is  to  this  common  error  that  may  be  attributed  the  deficiency  of 
practical  instruction  in  this  branch.  t 

I  would  not  say  that  these  methods  are  so  bad  that  no  one  can  learn  by  them, 
but  that  it  is  my  humble  opinion  that  the  very  faults  and  errors  to  which  I  have 
referred,  have  given  rise  to  an  opinion  often  expressed,  viz.,  that  book-keeping 
can  not  be  learned  at  school. 

Book-keeping  by  double-entry  is  undoubtedly  a  science,  and  not  merely  a 
collection  of  forms  and  arbitrary  rules.  Every  operation  in  it  being  susceptible 
of  rational  exposition,  there  is  no  doubt  that  it  can  be  taught  with  much  better 
effect  by  pursuing  a  course  more  in  accordance  with  the  modern  methods  of 
teaching  most  branches.     Arithmetic,  for  example,  is  much  better  taught  now 


PREFACE.  7 

than  formerly,  because  it  is  taught  more  by  reasoning  and  less  by  rules.  The 
modern  method  of  teaching,  I  believe,  is  by  experiment  and  example,  rather  than 
by  rule  and  precept ;  in  it  the  practice  and  theory  are  united,  but  the  theory 
follows,  not  precedes,  the  practice.  A  question  is  proposed,  the  operation  is 
performed  and  explained,  and  then  follow  the  principle  and  rule.  This  is  the 
natural  way ;  and  in  this  order,  if  I  mistake  not,  have  originated  all  the  scien- 
ces— first  the  fact  was  discovered,  and  then  a  theory  was  made  to  account  for 
it.     Facts  originate  theory,  and  not  theory  facts. 

This  book  does  not  profess  to  be  a  new  system  of  keeping  accounts,  but  an 
improved  and  more  eflScacious  way  of  teaching  the  theory  and  practice  of  the 
art.  Teaching  book-keeping  does  not  consist  so  much  in  explanations  of  the 
forms  and  purposes  of  the  account-books,  as  in  expositions  of  mercantile  trans- 
actions. To  know  what  the  Cash-Book  is  for,  and  to  know  how  to  make  an 
entry  in  it,  are  very  different  things — quite  as  different  as  knowing  what  a  vio- 
lin is  for,  and  knowing  how  to  play  on  one.  The  object  should  be  to  teach  the 
science,  and  not  merely  a  set  of  forms  of  account-books,  variable  at  the  will 
of  the  book-keeper,  and  varying  with  the  nature  of  the  business  to  be  recorded 
in  them. 

Journalizing  is  the  scientific  part  of  book-keeping;  by  it  is  meant  the  cor- 
rect determination  of  the  objects  and  persons  which,  in  business  transactions, 
may  be  our  true  debtors  and  creditors.  Without  the  skill  to  determine  these, 
our  knowledge  of  book-keeping  amounts  to  nothing.  No  variation  in  the 
number,  the  forms,  or  the  ruling  of  the  account-books,  can  afford  any  assist- 
ance to  the  learner  in  this  part  of  the  study.  It  is  in  this  part  o£  the  science 
I  claim  to  have  made  a  great  improvement,  and  to  have  reduced  journalizing 
to  a  simple  question  of  indebtedness.  In  most  of  the  mr.ihods  used,  many 
rules  are  given  to  teach  to  journalize,  or  to  distinguish  tlie  debtors  and  cred- 
itors that  result  from  business  transactions.  But  it  is  well  known  that  these 
rules  are  all  liable  to  exceptions,  and  the  pupil  encounters  as  much  diffi- 
culty in  understanding  when  to  apply  a  rule  and  whon  not,  as  he  would  were 
he  to  study  the  science  without  rules ;  that  is,  these  rules,  from  their  variety 
and  exceptions,  are  more  difficult  to  understand  and  apply  than  the  science  with 
which  they  are  connected.  In  this  work,  the  all-important  part  of  the  science 
(journalizing)  is  uniformly  explained  by  one  rule.  This  rule  is  simple  in  its 
nature,  invariable  in  its  utility,  and  in  its  truth  self-evident.  It  is  a  rule  that 
directs  the  thoughts  of  the  pupil  to  the  real  merits  of  a  transaction — brings  into 
action  his  interested  feelings,  invests  his  mind  with  practical  ideas,  and  teaches 
what  will  avail  him  in  the  business-world.  While  the  method  of  imparting  a 
knowledge  of  accounts  laid  down  in  this  work,  and  so  arranged  as  to  form  a 
course  of  practice  for  the  student  to  pass  through,  must,  in  the  author's  opin- 
ion, result  in  giving  him  a  better  practical  knowledge,  it  will  also  be  found  to 
be  the  easiest  on  which  to  study  or  to  teach. 

A  method  of  teaching  any  branch  which  encumbers  it  unnecessarily  with 
rules,  principles,  and  divisions,  makes  the  head  of  the  student  that  commits 
them  to  memory  a  mere  box ;  while  the  more  modern  (the  inductive)  treats 
the  pupil  as  a  responsible  and  free  agent.     That  instruction  which  is  addressed 


8 


PREFACE. 


to  and  excercises  the  rational  faculties,  will  be  of  service  even  though  it  should 
be  erroneous ;  for  the  man  that  has  been  taught  to  use  and  to  depend  on  his 
reason,  is  less  liable  to  remain  in  error  should  he  be  in  it,  and  less  to  get  m 
when  he  is  out. 

The  forms  of  the  account-books  in  this  volume  accord  very  well  with  those 
used  in  the  United  Slates;  and  I  consider  them  well  calculated  to  exemplify 
the  practice  of  the  science  on.  There  are,  it  is  true,  shorter  methods  of  keep- 
ing books,  which  are  sometimes  used  by  experienced  book-keepers ;  but  these 
short  methods  can  not  be  adopted  until  one  is  master  of  the  subject  as  a  science, 
nor  are  they  at  all  suitable  to  teach  from— for,  in  studying,  we  require  to  sec 
the  art  as  a  whole,  and  not  in  an  abbreviated  form.  When  the  science  is  well 
understood,  in  connection  with  a  good  system  or  set  of  forms  of  account-books, 
there  will  be  no  difficulty  in  understanding  any  variations  in  those  forms,  or 
any  other  system  of  keeping  books  by  double-entry. 

The  plan  of  the  book  is  this:  One  part  consists  of  a  set  of  account-books, 
filled  with  mercantile  transactions,  embracing  all  the  variety  likely  to  occur  in 
the  natural  course  of  business,  beginning  with  the  simplest  and  advancing  to 
the  more  complicated.  All  the  important  papers  and  calculations  required  by 
those  transactions  are  preserved  and  explained,  and  bear  corresponding  dates, 
in  the  part  of  the  book  entitled  Forms  and  Calculations. 

The  number  of  transactions  composing  the  five  months'  business  embraced  in 
the  account-books,  is  about  one  hundred  and  fifty,  which,  extending  into  all 
kinds  of  business,  are  calculated  to  anticipate  most,  if  not  all,  the  cases  likely 
to  occur,  and  to  furnish  the  pupil  with  enough  practice  in  keeping  books  to 
develop  the  th^'ory  and  to  make  him  a  book-keeper. 

The  first  part  of  the  book  (about  sixty  pages)  is  to  serve  as  the  teacher.  In 
this  part,  all  the  oj-erations,  transactions,  and  entries,  are  fully  and  minutely 
explained  ;  and  all  those  explanations  bear  dates  corresponding  with  the  matter 
in  the  account-books.  These  instructions  conduct  the  student,  like  a  teacher, 
through  a  set  of  books— attending  him  while  opening,  keeping,  balancin"-, 
closing,  and  re-openmg  the  same,  and  in  making  his  trial-balances,  account- 
sales,  accounts-current,  balance-sheets,  &c.,  &;c. 

My  first  work  on  this  subject,  written  many  years  since,  and  which  has 
passed  through  about  twenty  editions,  is  by  no  means  abrogated,  but  forms  the 
basis  of  this  publication.  It  is  rewritten,  enl?rged,  and  improved,  and  em- 
braces the  result  of  the  long  experience  of  the  author  as  an  accountant  and 
teacher  of  book-keeping.  I  have  preserved  all  tne  most  appropriate  and  useful 
examples  of  business,  introduced  others,  and  omitted  those  deemed  too  com- 
plicated to  be  of  practical  utility  to  the  pupil.  I  have  also  given  more  exam- 
ples in  mercantile  arithmetic,  many  of  which  have  not  before  been  published. 
The  entries  under  date  of  May  30th  will  furnish  the  practical  book-keeper,  as 
well  as  the  student,  with  forms  for  the  making  up  of  what  are  called  monthly 
entries. 

All  of  which  is  respectfully  submitted  to  the  patronage  of  the  public  by 


New  York, 

November  1, 1850. 


THE  AUTHOR. 


CONTENTS. 


Directions  to  Teachera page  10 

Introduction It 

Definitions  of  Account-Books 12 

Note  on  the  Day-Book 7'2 

Note  on  the  Journal 94 

Note  on  tlie  Leger n  0 

Note  on  the  Cash-Book 157 

Infallible  Rule  for  Journalizing 13 

Opening  Books 14 

BusiNKss  OF  January — 

Entries  relating  to— Entering  into  Part- 
nership-Advancing Capiial— Assuming 
Partners'  Dehts— Simple  Purchases  and 
Sales— Simple  Receipts  and  Payments 
— Loans — Loans  on  Notes  and  Interest 
— Receiving  and  Delivering  Notes — 

Paying  our  Notes 14 

Elucidations  of  the  Journal  Entries 14-21 

Postine-PostingtheEntriesof  January.  22-25 

Trial-Balances — What  they  prove 26 

Trial-Balance  of  January 25 

Trial-Balance  of  February 36 

Trial-Balance  of  March 42 

Trial-Balance  of  April 47 

BUSISKSS  OF  Fkbkuary  — 

Entries  relating  to — Paying  Notes  be- 
fore due — Petty  Expenses — Consigning 
— Shipping  for  account  of  others — Fail- 
ure and  Compromise — Importing  Gfxjds 
— Acceplina:  Drafts — Drafts  or  Ordera 
at  Sight — Buying  Vessels — Drawing 
Bills  of  Exchange — Bartering — Accom- 
modation Notes — Discounting  Notes — 

Insuring  Shipments  and  Vessels 27 

Elucidations  of  the  Journal  Entries.... 27-3 5 

BUSINKSS   OF  MaKCH 

Entries  relating  to— Delivering  per  Or- 
der— Receiving  Consignments — Paying 
Charges  on  Con'^ignments — Selling  Con- 
signments— Selling  at  Auction — Collect- 
ing Notes  and  Acceptances — Receiving 
Notes  with  Interest — Allowing  for  dam- 
ages in  Sales — Paying  Acceptances — 
Closing  Consignments— Rendering  Ac- 
count-Sales— Receiving  Account-Sales 
— Buying  in  Joint-Account — Selling  in 
Joint  Account — Receiving  our  Note  be- 
fore due — Paying  Money  to  a  Partner — 
Buying  Bills  of  Exchange — Closing  Ac- 
count of  Sales  in  Joint-Account — Ren- 
dering Account-Sales  of  Merchandise 
in  Joint- Account 36 

Elucidations  of  the  Journal  Entries 36-42 

BusiiNKSs  OF  April — 

Entries  relating  to — Paying  Rent — Re- 
ceiving Returns — Receiving  Consign- 
ments free  of  Charges — Selling  on  Com- 
mission—  Renewing  Notes — Allowing 
to  ourselves  for  damages — Shipping  on 
our  Account  —  Closing  Consignment — 
Buying  in  Joint  Account — Exchansing 
uncurrent  Money — Renewing  our  Notes 
— Transferring  Purchase  at  Auction — 
Drawing:  Prize  —  Receiving  Account- 
Sales  with  Returns — Taking  a  Consign- 
ment to  our  account  -Receiving  Freights 
of  our  Vessel — Drafts  remitted  us  for 
Collection — Buying  Drafts  per  Order 

2 


and  for  Remittance — Investing  Funds  in 
Drafts — Buying  Specie — Allowing  In- 
terest on  Partner's  Capital — Rendering 
Accounts-Current — Closing  Accounts — 

Correcting  Errors,  dec,  &;c 4'j' 

Elucidations  of  the  Journal  Entries 43-47 

Balance-Slieets 48 

Balance  Sheet  of  April  30,  1850 49 

Explanation  of  ihe  I3alance-Sheet 5'i 

Closing  a  Balance-Sheet 55 

Closing  the  Books 55 

Explanations  of  the  closing  Entries 55 

O  pening  Books 56 

BiTsiNKss  OF  May — 

Relating  to — Clerks'  Salaries — Deliver- 
ing Note  for  Debt  due — Investing  Money 
in  Stocks — Receiving  Account-Sales — 
Receiving  Account-Current  with  balance 
of  Interest — Receiving  Draft  for  balance 
of  Account — Delivering  Note  on  Open 
Policy — Shipments  in  Joint-Account — 
Monthly  Entry  of  Purchnses — Monthly 
Entry  of  Sales — Monthly  Entry  of  Cash 
received — Monthly  Entry  of  Cash  paid 

— Correcting  E rrors 57 

Elucidations  of  the  Journal  Entries 57-59 

Explanations  of  the  Monthly  Entries ....     58 

Correcting  Errors 47 

200  Q,UE8TioNS  AND  Answkrs,  relating  to — 

Opening  Books -.60,  61 

Conducting  Books 62-68 

Closing  Books 68-70 

Day-Book  —  containing    150    Business 

Transactions 71 

Journal — containing  120  Ent.-ies 93 

Leger — containing  40  Accounts 109 

Cash-Book — containing  <^v^  Entries 155 

Invoice-Book — containing  4  Entries 165 

Sales  Book — containing  4  Entries ...   169 

Commission  Sales-Book  —  containing  25 

Entries 173 

Bill-B(X)k — containing  40  Entries 179 

MKRCANTrLE  FORMS — 

Receipts — G  rders — Promissory  Notes — 

Drafts— Bills  of  Exchange 186,187 

Accounts  of  Sales 188, 189 

Accounts-Current  without  Interest 190 

Accounts-Current  with  Interest 192-196 

Accounts-Current  averaged 198 

Letters — 

Circular 201 

On  Ordering  Goods 202 

On  Consigning  Goods 203 

On  rendering  Account-Sales 204 

On  d  raw  ingD  rafts 205 

On  rendering  Accounts-Current 205 

Mercantile  Calculations — 

Discount  and  Interest 206 

Common  Divisor  of  6000 — bow  found..  208 
Commission  and  Insurance 20fc.  209 

Exchanges — 

English,  French,  &c. 209  211 

Equation  of  Payments — 

Averaging  Bills 214 

Averaging  Account-Sales 215 

Averaging  Accounts 216 

Averaging  Balances 2U  217 

Protits  and  Losses 219 


f 


11 


il 


•    » 


^*  This  work  is  published  in  the  Spanish  Laxguage  in  the  same  style. 


^> 


DIRECTIONS    TO    TEACHERS. 


It  is  evident,  since  book-keeping  is  the  disposition  of  business  transactions 
in  account-books,  that  there  is  no  more  elFectual  way  of  teaching  that  science 
than  that  of  furnishing  the  pupil  with  a  course  of  well-selected  mercantile 
transactions,  of  teaching  him  to  maTce  the  entries  of  the  same  in  the  different 
account-books,  and  dispensing  the  necessary  instruction  as  the  transactions 
arise  and  the  occasion  may  require.  In  this  manner  the  pupil  becomes  famil- 
iar with  the  forms  and  objects  of  all  the  account-books  in  common  use  in  mer- 
cantile or  commercial  houses,  gains  no  insignificant  idea  of  business  affairs, 
and  eventually  arrives  at  a  just  conception  of  the  science  —  its  theory  and  prac- 
tice. Such  a  method  of  teaching  book-keeping  is  undoubtedly  the  most  natu- 
ral, interesting,  and  practical ;  and  I  know,  from  many  years'  experience,  that 
very  beneficial  results  accrue  to  the  pupil  when  it  is  pursued  under  the  gui- 
dance of  any  intelligent  teacher. 

In  order  that  the  pupil  may  enter  upon  the  course  of  instruction  laid  down 
in  this  work  for  him  to  pass  through,  let  him  have  a  set  of  five  blank  books  — 
Day-Book,  Jo.^rnal,  Leger,  Cash-Book,  and  Bill-Book.*    The  first  three  may 
each  contain  eight  sheets  of  cap  paper,  ruled  to  correspond  with  those  books ; 
the  other  two  maj  contain  about  three  sheets  each,  ruled,  &c.     Next,  let  the 
pupil  transcribe  into  his  Day-Book  the  transactions  of  January,  from  the  Day- 
Book  of  this  volume,  inserting  his  own  name  in  place  of  Thomas  Blanchard. 
The  entries  of  the  notes  in  the  Bill-Book  should  be  made  at  the  time  of  copying 
the  Day-Book  entries,  as  the  notes  arise  in  the  transactions.     The  same  in  re- 
spect to  the  Cash-Book  ;  let  the  pupil  enter  in  it  all  the  sums  of  money  received 
and  paid,  as  he  receives  and  pays  them,  composing  his  entries  from  the  Day- 
Book  on  a  separate  sheet,  and,  when  correct,  copying  them  into  his  Cash-Book. 
Next,  let  the  pupil  begin  to  journalize  :   he  will  make  his  Journal  entries  first 
on  a  separate  sheet,  and,  when  found  correct,  copy  them  into  his  Journal. 
Next,  he  will  post,  or  make  entries  in  his  Leger  ;  and,  lastly,  make  a  trial- 
balance  from  the  Leger.     He  may  balance  the  Cash-Book  one,  two,  or  more 
times  during  the  month. 

If  one  part  of  the  science  is  to  receive  more  attention  than  the  other,  it  is  the 
journalizing;  this  is  fully  and  constantly  explained,  and  the  explanations  dated 
to  correspond  with  the  transactions  and  entries.  In  general,  the  order  of  pro- 
ceeding with  the  course  of  instruction  is  most  carefully  delineated  in  the  first 
sixty-eight  pages  ;  and  it  is  confidently  believed  that  teachers  will  find  the  con- 
tents of  this  book  very  conveniently  arranged  for  teaching  in  classes  or  otherwise. 

*A9  the  Invoicp  and  Salrs  Books  includo  nothinir  moro  tlinn  descriptions  of  goods  bought  and  sold, 
it  is  not  thought  worth  while  to  introduce  tJu'in  into  the  courise.  Blank  Hooka  in  gets  (six  to  the  set),' 
arranged  by  the  Author,  may  be  bad  of  the  I'ubliBhcr. 


/     ' 


J' 


■■k 


t 


THE    SCIENCE 


OF 


DOUBLE-ENTRY  BOOErKEEPING, 


SIMPLIFIED. 


{' 


V 


INTRODUCTION. 


.f 


The  ^ience  of  BQoW^^eeping  by  double-entry  teagjies  to  record, 
systematfcally  and  free  from  error,  the  various  transactions  of  business 
or  of  the  ijjercantile  profession,  so  that  the  merchant  may  know,  his  pecu- 
mary  situation,  be»,ai)^to  substantiate  his  claims  and  pr^teqt  his  prop- 
erty, and  at  (Jissoluti^  ^may>'leave  behind  him  such  eyidence  as  will 
enable  his  fridlids  to  understand  his  comrnercial  relations  aifil  engage- 
ments, and  to  wind  up  his  affairs  in  a  rqg^ncr  satisfactory^to  all  parties 
conceiVied. '%  F 

To  ^s^hibit  with  clcsirness  ,and  regularity  a  correct  and  continupcji 
record  of  the  mercantile*  transactions  that  occur  between  owrsel^lfes  and 
others,  we  deem  it  neg^ssary  to  introduce  the  following  books : — 


0 


1    *^NV01CE-B00K.  ^ 

2  Saxes-Book. 

3.  Cash-Book. 

•  4.  Commission  Sales-Book. 

4  5.  Bill-Book.  •  * 

i  6  Daybook,  "^  ?  '^ 

7.  JouBXAL,       >  Principal.  ^ 

8.  Leger,         J 

Of  these  books,  Hie  Cash-Book,  Saleis-Book,  Day-Book.  Joun^al,  and 
Leger,  appear  to  be  indispensable  in  all  houses ;  while  the  others  may 
or  may  not  be  reqliired.  For  instance,  if  nq  promissory  notes  are 
given  or  received,  there  would  Itie  no  occasion"*for  the  Bill-Book ;  and 
if  the  bills  of  purc)iases  or  invoices  wei'e  fiWd  away  with  cate,  the  In- 
voice-Book might ^e  dispensed  with.  J 


i   * 


12 


INTRODUCTION. 


I- 


INVOICE-BOOK. — This  book  should  contain  a  minute  description 
of  all  the  merchandise  with  which  we  are  concerned — all  that  we  buy  or 
receive.  Entries  in  this  book  consist  merely  of  copies  of  the  bills  or 
invoices  of  goods  bought,  or  received  to  be  sold  on  commission.  The 
original  bills  and  invoices  should  be  preserved  with  care. 

SALES-BOOK. — This  book  should  give  a  description  of  all  the  mer- 
chandise we  sell  or  pass  out  of  our  possession.  At  the  time  the  pur- 
chaser selects  his  goods,  they  are  described  in  the  Sales-Book — quantity, 
quality,  and  price;  and  from  this  book  we  make  out  his  bill.  In  this 
order  we  may  render  a  second  or  third  bill  exactly  like  the  first. 

CASH-BOOK. — This  book  shows  all  the  sums  of  money  which  we 
pay  or  receive,  with  a  short  explanation  relating  to  each  sum.  The 
entries  in  this  book  are  made  at  the  time  of  paying  or  receiving  the 
money. 

In  a  business  where  there  are  many  sums  received  and  paid,  this  book 
should  be  balanced  daily  ;  which  is  done  by  adding  both  pages  (Dr.  and 
Cr.),  and  subtiacting  the  total  paid  from  the  total  received,  and  the  dif- 
ference will  be  the  *'  balance  on  hand."  This  balance  should  agree  with 
the  money  itself. 

COMMISSION  SALES-BOOK.— This  book  shows  the  particulars 
)f  merchandise  sold  by  us  for  others.  Entries  are  made  in  this  book 
;rom  the  common  Sales-Book,  and  from  it  we  make  the  Accounts  of 
Sales  that  we  may  have  to  remit  to  those  for  whom  we  have  sold. 

BILL-BOOK. — This  book  shows  a  description  of  all  the  notes  or 
acceptances  i»i  our  favor  or  against  us,  with  their  dates,  credits,  when 
due,  and  amounts.  Those  in  our  favor  are  entered  under  the  head  of 
Receivable,  and  those  against  us  under  Payable. 

DAY-BOOK. — This  book  shows  a,  clear,  simple,  complete,  and  brief 
relation  of  all  the  transactions  of  our  business.  The  greater  part  of  the 
entries  in  this  book  are  taken  or  composed  from  the  Invoice-Book,  Sales- 
Book,  and  Cash-Book.  The  Day-Book  may  be  considei-ed  the  most 
important  of  all  the  books,  as  it  gi-es  us  a  complete  history  of  our 
business. 

JOURNAL. — This  book  shows  the  names  of  the  debtors  and  credit- 
ors of  all  the  transactions  recorded  in  the  Day-Book,  for  the  purpose  of 
transferring  the  same  ftom  the  Day-Book  to  the  Leger.  Ali  the  science 
of  Book-Keeping  is  embraced  in  the  Journal. 

LEGER. — This  book  shows  the  accounts  of  all  our  debtors  and  cred- 
itors. The  entries  in  this  book  are  drawn  from  the  Journal.  The  great 
and  only  object  of  this  book  is  to  show  the  result  of  our  business  with 
every  person,  property,  and  object.  Every  sum  that  any  individual  or 
object  may  owe  us  or  we  may  owe  him,  from  the  beginning  of  the 
business  to  the  present  time,  wiil  be  found  under  its  proper  head  in  this 
book. 


JOURNALIZING. 


All  the  explanations  of  business  transactions,  and  the  entries  they 
require  in  the  Journal,  will  be  found  on  the  immediately  following 
pages.  The  reader  need  not  look  in  the  Day-Book,  Journal,  or  Leger, 
for  instruction,  because  those  books  give  the  business  that  is  supposed 
to  occur,  and  not  the  instruction.  By  this  arrangement,  the  student  will 
derive  the  advantage  of  knowing  which  part  of  the  volume  is  to  serve 
as  his  teacjier,  and  which  part  he  is  to  learn  or  be  taught. 

INFALLIBLE  RULE. 

In  order  to  render  that  part  of  the  subject  commonly  considered  diffi- 
cult, more  simple,  positive,  and  rational,  and  to  conduct  the  mind  of  the 
reader  or  student  into  its  true  elements,  securing,  at  every  degree  of 
advancement,  a  clear  understanding  of  whatever  arises  for  his  consider- 
ation, I  can  not  recommend  a  too  close  observance  of  the  one  and  only 
rule  needful.     This  rule  originates  thus : — 

Book-Keeping,  or  the  science  of  accounts,  is  a  systematic  exhibition 
of  all  that  is  owed  us,  and  all  that  we  owe.  These  are  our  Creditors,  and 
those  our  Debtors ;  consequently,  the  science  may  be  said  to  be  founde^l 
on  the  two  words.  Debtor  and  Creditor.  Hence  arises  the  rule — infal- 
lible in  its  application,  and  in  its  truth  self-evident. 

THE  RULE. 

Whoever  or  whatever  owes  us  is  Debtor Di: 

Whoever  or  whatever  we  owe  is  Creditor Cr. 

Or,  in  other  words — 

Debit  whatever  owes  us  ;  and 
Credit  whatever  we  owe. 

Or,  we  may  resolve  the  rule  into  the  following  simple  questions  ;— 

What  person  or  object  owes  7is  ? 

For  that  alone  is  the Dr. 

What  person  or  object  do  we  owe  ? 

For  that  alone  is  the Cr. 

Note. — There  is  a  discrimination  in  the  sentences  of  this  rule,  not  at  once 

perceived  by  all  readers.     Every  mercantile  transaction  contains  many  more 

debtors  and  creditors  than  Ave  are  directly  concerned  with.     For  instance,  in 

the  simple  transaction  of  buying  merchandise,  there  are  four  debtors  and  cred- 

tors  from  which  we  have  to  choose  in  making  a  Journal  entry :  1st.  Mier* 


!l 


14 


JOURNALIZING. 


JOURNALIZING. 


15 


li 


chandise  is  a  debtor,  because  it  owes  us  for  its  cost ;  2d.  We  are  debtor,  be- 
cause we  owe  the  person  of  whom  we  bought ;  3d.  Merchandise  is  creditor, 
because  the  person  who  sold  it  owes  it  for  the  value  it  produced  him ;  4th.  The 
person  we  bought  of  is  creditor,  because  we  owe  him.  Here,  then,  we  find 
two  debtors  and  two  creditors  arising  out  of  this  little  transaction :  but  the 
rule  says  that  only  those  that  owe  us,  and  those  that  we  owe,  are  to  be  counted 
as  debtors  and  creditors  in  our  books,  however  many  more  there  may  be. 


THE  BUSLNESS  OF  JANUARY: 

Embracing  Entries  of  twenty-six  Transactions,  relating  to — Entering  into  Partnership — Ad- 
vancing Capital — Assuming  Partners'  Debts — Simple  Purcbascs  and  Sales — Simple  Re- 
ceipts and  Payments — Loans — Loans  on  Notes  and  Interest — Receiving  and  Delivering 
Notes — Paying  our  Notes. 

The  Day-Book  commences  with  a  statement  of  the  situation  of  tho 
party  or  parties  entering  into  partnership — what  capital  they  possess,  and 
what  it  consists  of;  what  they  owe,  and  how  they  owe  it.  In  making 
Day-Book  entries,  or  recording  a  transaction  in  the  Day-Book,  we  do  not 
say  who  is  debtor  or  who  is  creditor,  because  this  belongs  to  the  Journal. 

The  capital  being  advanced — that  is,  the  money  deposited  in  tho 
banks  and  entered  in  the  Cash-Book — the  notes  described  in  the  Bill- 
Book,  the  inventory  of  merchandise  copied  into  the  Invoice-Book,  and 
the  articles  of  agreement  signed  and  exchanged,  we  make  an  entry  in 
the  Day-Book  similar  to  that  which  appears  in  said  book  under  date  of 
January  5,  1850. 

The  Journal  commences  with  an  entry  formed  from  the  first  one  in 
the  Day-Book.  The  entry  consists  of  a  resolution  of  those  that  owe  us, 
and  those  that  we  owe,  for  the  purpose  of  conveying  the  same  to  the 
Leger.  These  Journal  entries  are  made  by  the  application  of  the  rule, 
thus  :  Read  the  Day-Book  entry  carefully,  and  endeavor  to  find-.— 

Wh^  or  what  owes  us,  and  write  that  as Dr. 

Who  or  what  we  owe,  and  write  that  as Cr, 

Day-Book — January  5. 

The  first  entry  in  the  Day-Book  gives  the  following  entry  in  the 
Journal : — 

Journal — January  5. 

Sundries  Dr.  To  Sundries. 

Cash $38,000  00 

Bills  Receivable 4,670  00 

Merchandise 3,125  00 

Charles  Lawrence 140  00    $45,935  00 

To  Thomas  Blanchard 28,000  00 

To  C.  C.  Marsh 17,935  00      45,935  00 


Elucidation. — The  words  ''  Su?idries  Dr.  To  Sundries"  are  merely 
a  preface  to  the  debtors  and  creditors,  indicating  that  there  are  more 
than  one  that  owe  us,  and  more  than  one  that  we  owe.  The  first  four 
names  in  the  above  entry  are  called  debtors.  We  have  now  to  show 
why  they  are  so. 

Cash  is  debtor,  because  that  kind  of  property  denominated  Cash  owes 
us  fi>r  the  amount  of  value  we  have  in  it — viz.,  $38,000. 

Bills  Receivable  are  debtor,  because  the  notes  which  we  hold  against 
different  persons,  owe  us  for  the  sums  for  which  they  are  written  or 
drawn — viz.,  $4,670.  Observe,  it  is  not  the  persons  who  have  given  us 
these  notes  that  owe  us,  but  the  notes  themselves ;  our  claim  for  the 
value  consists  in  the  possession  of  these  notes.  The  title  of  bills  receiv- 
able is  applied  to  all  paper  claims  in  our  favor,  such  as  notes,  diafts,  &c. ; 
but  there  is  no  necessity/  to  give  anything  a  titl&^  until  we  have  deter- 
mined whether  it  owes  us,  or  we  owe  it.  % 

Merchandise  is  debtor,  because  that  property  owes  us  for  the  value  in 
it,  which  is  S3, 125.  ^ 

Charles  Lawrence  is  debtor,  because,  he  owes  us  for  the  amount  of  a 
claim  that  we  have  against  him — $140:  ^ 

The  creditors  are — 

Thomas  Blanchard,  who  is  creditor  because  the  firpi,  Blanchard  & 
Marsh,  owes  him  individually  for  the  amount  of  capital  he  has  advanced 
—$28,000. 

C.  G.  Marsh,  for  the  same  reason,  for  his  part  of  the  capital  advanced 
—being  $17,935.  ♦ 

The  sum  total  of  the  debtors  should  be  extended  into  the  last 
column,  and  should  agree  with  itie  amount  of  the  creditors  also  ex- 
tended. 

The  amount  of  the  sums  of  the  debtors,  and  that  of  the  creditors, 
should  always  be  equal  in  every  Journal  entry. 

When  an  entry  in  the  Day-Book  has  been  Journaliied,  or  entered  in 
the  Journal,  we  place  the  page  of  the  latter  in  the  margin  of  the  former, 
opposite  the  said  entry.  , 

Note. — We  make  a  distinction  in  the  position  of  the  debtors  and  creditors 
in  the  Journal  entries,  by  placing  the  debtors  close  against  the  line  on  the 
left,  and  the  creditors  about  an  inch  further  to  the  right. 

The  preposition  "To"  is  always  placed  before  the  names  of  the  creditors, 
because  the  meaning  is,  that  we  are  P^.  to  those  creditors;  we  are  Dr.  being 
words  understood  and  not  expressed. 

Day-Book — 2d  Entry  op  January  5. 

The  transaction  under  this  date  in  the  Day-Book  gives  the  following 
debtors  and  creditors,  or  Journal  entry  : — 

Sundries  Dr.      .•      To  Bills  Payable.  .$2,310  00. 

Thomas  Blanchard v $1,080  00 

C.  C.  Marsh 1,230  00 

2,310  00 


4r*- 


I 

I 


16 


JOURNALIZING. 


Elucidation. — In  this  entry,  as  in  the  first,  the  debtors  are  prefaced 
by  the  word  Sundries,  there  being  more  than  one  debtor. 

Thomas  Blanchard  is  debtor,  because  he  individually  oices  us  (tho 
firm)  for  the  amount  of  his  note,  which  we  have  assumed. 

C.  C.  Maj'sh  is  our  debtor  for  the  same  reason. 

The  creditor  in  this  entry  is  Bills  Payable.  It  is  so  because  we  owe 
the  notes ;  having  assumed  ihem,  they  now  stand  out  against  us  as  our  own. 

Bills  Payable  is  a  title  given  to  notes  and  acceptances  with  our  sig- 
nature in  favor  of  others. 

Day-Book — January  7. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

Store-Fixtures  Dr. 

To  Cash $300  00 

* 

Elucidation. — The  store-fixtures  are  a  property  which  has  cost  us 
$300,  for  which  it  Dices  us,  and  therefore  is  debtor.  Cash  is  creditor, 
because  we  owe  that  j)roperly  for  paying  the  sum  for  us.  For  example, 
if  John  Sims  had  paid  fur  the  store-fixtures  for  us,  we  would  then  owe 
him  instead  (jf  Cash. 

Observe,  that  when  we  write  "  Store-Fixtures  Dr.  To  Cash,"  we  do 
not  mean  to  say  that  the  former  owes  to  the  latter,  but  that  Store-Fix- 
tures are  debtor  to  us,  and  that  we  are  debtor  to  Cash.  If  this  Journal 
entry  were  written  in  full,  it  would  read  thus: — 


Store-Fixtures are  Dr.  to  us  for. 

We  are  Dr.  To  Cash .for 


$300  00 
300  00 


We  ought  never  to  forget  that  the  words  in  italics,  although  never 
expressed,  are  always  to  be  understood.  Omitting  these  words,  leaves 
the  entry  as  it  should  be  in  the  Journal. 

Day-Book — January  8. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en 
try  in  the  Journal : — 

Paul  Harris                                 Dr.  [to  u^) 
(  We  are  Dr.)  To  Merchandise $325  00 

Elucidation. — Paul  Harris  is  debtor,  because  he  owes  %is  for  the 
amount  of  the  goods  sold  to  him. 

Merchandise  is  creditor,  because  we  owe  that  class  of  property  for 
having  produced  us,  in  this  case,  $325.  For  the  value  that  Merchandise 
has  produced  us,  Harris  is  responsible. 

We  never  see  the  word  Cr.  (creditor)  in  Journal  entries.  It  is  un- 
necessary, because  the  debtor  being  always  named  first  in  the  entry,  it 
follows  that  the  second  must  be  the  creditor. 


JOURNALIZING. 


17 


Day-Book — January  10.  ' 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en 
try  in  the  Journal : — 

Bills  Receivable                          Dr.  (to  us) 
(  We  are  Dr.)  To  Merchandise 8500  00 

Elucidation. — The  promissory  note  of  William  Blakoley,  which  we 
entitle  Bills  Receivable,  is  debtor,  because  it  owes  us  for  the  value  the 
merchandise  has  produced  us — $500. 

Merchandise  is  creditor,  because  we  owe  it  for  producing  us  the  sum 
of  $500.  If  a  man  had  produced  or  given  us  $500,  we  all  would  be 
willing  to  owe  him,  or  credit  him,  for  it ;  why  not,  then,  acknowledge 
ourselves  indebted  to  merchandise  for  what  it  produces  ? 

Day-Book — January  12. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

Cash  Dr. 

To  Merchandise $125  00 

Elucidation. — Cash  is  debtor,  because  it  owes  us  for  the  value  that 
the  merchandise  has  produced  us,  for  that  value  is  in  the  cash.  Cash  is 
a  property  that  owes  us  $125  more  since  the  transaction  occurred  than 
it  did  before. 

Merchandise  is  creditor,  because  we  owe  it  for  producing  us  the  $125. 

Day-Book — January  13. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal  :— 

Oliver  Otis  &  Co.  Dr. 

To  Merchandise $2,000  00 

Elucidation. — Oliver  Otis  &  Co.  are  debtors,  because  they  owe  us 
for  the  value  of  the  goods  we  have  sold  them,  and  for  which  they  have 
not  yet  paid. 

The  Merchandise  is  creditor,  because  we  owe  it  for  the  value  it  has 
produced  us,  and  for  which  Otis  &  Co.  are  responsible. 

Day-Book — January  14. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : —  ' 

Merchandise 


Dii 


To  Henry  Austin 4 $1,500  00 

Elucidation. — As  the  merchandise  has  cost  us  $1,500,  it  must  owe  us 
that  sura  ;  therefore  it  is  debtor. 

3 


'?    I 


^ 


If; 


13 


JOURNALIZIJS'G. 


Henry  Austin  is  creditor,  because  we  owe  7dm  for  the  goods  we  have 
bought  of  him. 

Day-Book — January  14   (2d  transaction  of  this  date). 

The  second  transaction  of  tliis  date  in  the  Day-Book  gives  the  follow- 
ing entry  in  the  Journal : — 

Merchandise                                      Dr.  {to  us) 
(  We  are  Dr.)  To  Cash $S00  00 

Elucidation. — The  goods  we  have  bought  are  debtor,  because  they 
owe  us  for  their  cost — $800. 

We  are  debtor  to  Cash,  because  that  article  has  paid  Rogers  &  Bros, 
for  us ;  therefore  Cash  is  the  creditor,  expressed  as  above. 

Note. — It  is  not  exactly  true  to  say  that  we  paid  Rogers  &  Bros,  for  the 
merchandise  in  the  above  transaction.  We  could  not  do  it  of  ourselves;  we 
must  employ  some  agent ;  the  agent  in  this  case  was  Cash. 

Day-Book — January  16. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

Merchandise  Dr.  [to  us  and  we)  To  Sundries.  .$3,200  00 

To  Cash $2,000  00 

♦*    Merchandise 1.200  00      3,200  00 

Elucidation. — First,  we  always  ask  ourselves,  what  owes  us  1  And 
we  write  down  what  we  think  owes  us  as  the  Dr. 

The  merchandise  owes  us,  because  it  has  cost  us  $3,200 ;  and  we  owe 
the  Cash  for  having  paid  $2,000  for  us  toward  the  payment  of  $3,200 ; 
and  we  owe  to  some  other  goods,  likewise  called  merchandise,  for  hav- 
ing paid  for  the  balance — being  $1,200.,  We  find, -then,  in  this,  transac- 
tion, one  debtor  and  two  creditors. 

Day-Book — January  17. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

James  Truman  Dr.  (to  us) 

(  We  are  Dr.)  To  Cash $1,000  00 

Elucidation. — Truman  otves  us  for  the  amount  we  have  lent  him. 
Cash  is  the  creditor ;  or,  we  owe  to  Cash  for  paying  the  amount  to 
J.  Truman  for  us. 

Day-Book — January  19. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 


JOURNALIZING. 


19 


Sundries  Dr.  {to  us  and  we)  To  Oliver  Otis  &  Co.  $2,000  00 

Bills  Receivable $1,000  00 

Cash 1.000  00    2,000  00 

Elucidation. — The  word  "  Sundries,"  as  we  have  before  said,  is 
merely  a  preface  to  the  debtors,  which  are  placed  directly  under  it. 

Bills  receivable  oice  vs  for  part  of  the  sum  that  Otis  &  Co.  have  paid 
us,  and  therefore  are  debtor. 

Cash  owes  us,  because  we  have  received  part  of  the  sum  that  Otis 
&  Co.  owed,  in  cash. 

Note. — When  a  person  pays  us  what  he  owed,  of  course  he  must  pay  us 
la  some  class  of  property  ;  consequently,  the  property  or  thing  in  which  he 
pays  us,  owes  us  the  sum  which  the  person  owed.  In  this  manner,  we  see 
how  Bills  Receivable  and  Cash  owe  us,  and  become  debtors  in  place  of  Otis 
&  Co. 

Otis  &  Co.  are  creditors,  because  we  owe  them  for  having  paid  us  the 
sum  they  owed,  and  for  which  we  had  charged  them. 

Note. — If  we  should  think  that  we  do  not  owe  Otis  &  Co.,  because  they 
have  only  paid  us  what  they  owed,  still  we  must  agree  in  this:  that,  as  they 
have  paid  us  $2,000,  they  ought  to  be  credited  for  that  sum,  which  amounts 
to  the  same  as  saying  we  owe  them  ;  for  no  one  should  be  credited  for  what 
we  do  not  owe  him. 

Day-Book — January  21. 

The  transaction  of  this  date  in  the  Day-Book  gives  us  the  following 
entry  in  the  Journal : — 

Bills  Receivable                                Dr.  {to  us) 
( We  are  Dr.)  To  Paul  Harris $325  00 

Elucidation. — The  sum  which  Harris  owed  us  is  now  owed  to  us  by 
the  note,  which  we  call  Bills  Receivable. 

Harris  having  paid  us  what  he  owed,  has  made  us  responsible  to 
him  for  the  same  sum ;  for  which  we  credit  him,  or  for  which  we  owe 
him 

Day-Book — January  22. 

The  transaction  of  this  date  in  the  Ikiy-Book  gives  us  the  following 
entry  in  the  Journal : —  ^' 

Cash                                                      Dr.  {to  us) 
{ We  are  Dr.)  To  James  Truman $1,000  00 

Elucidation. — Cash  owes  us,  because  in  this  class  of  property  we 
have  received  the  sum  that  is  paid  us.  Cash  is  always  a  debtor  when 
we  receive  it. 

James  Truman  is  a  creditor,  because  we  owe  him  for  the  sum  which 
he  has  paid  us,  or  delivered  to  us. 


n 


20 


JOURNALIZING. 


'lit 


ii 


i 


Note. — It  is  very  necessary  to  understand  well  the  exact  use  and  import  of 
the  words  debtor  and  creditor,  because  the  most  important  part  of  this  science 
consists  in  being  able  to  find  with  facility  "who  or  what  owes  us,"  and  "to 
what  or  whom  we  owe,"  in  all  mercantile  transactions.  A  clear  understand- 
ing of  the  more  simple  transactions  will  afford  us  great  aid  in  disposing  of 
the  more  complicated.  For  this  reason  we  are  so  particular  in  explaining  the 
simple  entries  of  this  month's  transactions. 


Day-BooK — January  22    (2d  transaction  of  this  date). 

The  second  transaction  of  this  date  in  the  Day-Book  gives  the  follow- 
ing entry  in  the  Journal : — 

Henry  Austin                                   Dr.  [to  us) 
(  We  arc  Dr.)   To  Bills  Payable $1,500  00 

Elucidation. — Having  paid  H.  Austin  what  we  owed  him,  he  now 
owes  us  for  the  sum  we  owed  him,  which  balances  his  account,  or  makes 
us  owe  each  other  equally. 

We  owe  to  our  note  (which  we  call  Bills  Payable),  because  it  has 
paid  Austin  for  us;  or,  because  our  note  stands  out  against  us,  holding 
us  responsible  for  the  face  of  it — $1,500. 

Note. — It  may  appear  absurd  to  some,  to  say,  in  this  transaction,  that  Aus- 
tin owes  us  ;  but  he  docs,  nevertheless,  and  it  may  be  proved  thus:  We  owed 
Austin  $1,500,  which  will  always  appear  on  the  credit  side  of  his  account  in 
our  books  ;  nothing  should  or  can  obliterate  the  tran.saclion  that  made  us  owe 
him.  Now,  then,  the  only  way  we  can  settle  this  debt,  is,  not  by  gettins:  out 
of  his  debt,  but  by  getting  him  into  our  debt  for  the  same  amount ;  therefore, 
when  we  pay  him  what  we  owe  him,  he  owes  us  for  the  sum  paid  him,  which 
makes  us  owe  each  other  equally. 

All  the  sums  on  the  credit  side  of  an  account  in  our  Leger,  are  sums 
that  we  owe,  and  those  on  the  debit,  are  sums  owed  to  us.  It  is  only 
the  balance,  or  difference,  wlych  is  to  be  paid. 


Day-Book — January  24. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

Sundries  Dr.  To  Merchandise.  .$410  00    ♦ 

S.  H.  Lovell $250  00 

Cash 160  00     410  00 


f\ 


Elucidation. — The  "Simdries"  (Lovell  and  Cash)  otce  us,  because 
the  amount  that  Merchandise  has  produced  us  is  in  them  ;  they  are 
therefore  debtors. 

We  are  debtor  to  Merchandise,  or,  which  is  the  same  thing,  Merchan- 
dise is  our  creditor,  because  we  owe  it  for  producing  us  8410. 


JOURNALIZING.  21 

Day-Book — January  26. 
Elucidation. — Similar  to  that  of  the  24th. 

Day-Book — January  28. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  flillowing  en- 
tiv  in  the  Journal : — 

Bills  Receivable  Dr.  To  Sundries.  .$2,121   00 

To  Cash $2,000  00 

"    Interest 121  00      2,121  00 

Elucidation. — In  this  transaction  we  lend  money  on  interest,  and 
receive  a  note  for  the  amount  that  will  be  due  at  the  end  of  the  year. 
The  note  is  responsible  to  us  for  the  amount;  the  note  owes  us,  and 
therefore  it  is  debtor  for  the  amount  it  is  drawn  for — $2,121. 

We  say  "  To  Sundries,"  because  we  owe  more  than  one — Cash  and 
Interest. 

Cash  is  creditor,  because  it  has  paid  to  J.  Truman  for  us  the  $2,000. 

Interest  is  creditor,  because  we  owe  it  for  producing  us  the  $121. 
Interest  is  a  branch  of  our  business.  The  name  our  business  receives 
in  our  books  is  Profit  and  Loss  ;  therefore.  Interest  account  is  a  branch 
of  the  Profit  and  Loss  account. 

Note. — This  science  renders  susceptible  of  responsibility  things  as  well  as 
persons;  that  is,  in  the  same  manner  that  John  Sims  becomes  our  debtor  or 
creditor,  so  may  a  bag  of  coffee,  or  a  box  of  sugar.  Our  Business,  which  we 
entitle  ''Profit  and  Loss,^^  may  also  become  our  debtor  or  creditor,  like  Sims 
or  the  coffee.  When  it  is  in  our  favor,  and  produces  us  value,  we  owe  it,  and 
it  becor  es  a  creditor  ;  when  it  goes  against  us,  and  costs  us,  or  makes  us  lose, 
it  owes  us,  and  it  becomes  a  debtor. 

Day-Book — January  30. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

Bills  Payable  Dr. 

To  Cash $1,230  00 

Elucidation. — The  note,  now  paid  and  cancelled,  was  issued  by  our 
partner,  Mr.  Marsh,  before  this  partnership  began,  and  it  was  assumed 
by  us  as  our  own. 

Bills  Payable  (the  name  we  give  to  the  note)  is  debtor,  because  it 
owes  us  for  having  paid  it  what  we  owed  it.  Had  we  paid  a  person 
what  v/e  owed  him,  he  would  be  debtor :  the  note  is  to  be  treated  as  a 
person.  It  was  not  T.  P.  Cope  that  we  owed ;  it  was  the  note,  in 
vvhosevcr  hands  it  might  have  been. 

We  are  debtor  to  Cash,  or  Cash  is  the  creditor,  because  we  owe  it  f^)r 
paying  the  note,  or  the  sum  of  the  note,  for  us. 


S'.-i »•*««..,.-. .  -vgr- 


POSTING. 


23 


» 


1  f^l 


POSTING. 


The  transactions  of  January  having  been  Journalized — that  is,  pre- 
pared for  tlie  Leger — we  will  now  begin  to  post.  Posting  is  a  very 
simple  operation,  being  little  more  than  copying  from  the  journal  into 
the  Leger.  The  object  of  posting  is  to  enable  us  to  find  all  concerning 
one  thing  or  person,  from  the  beginning  of  the  business  to  the  present, 
at  one  place  in  one  book — the  Leger. 

Example. — Merchandise,  we  perceive,  is  concerned  in  most  of  our 
transactions,  from  the  beginning  to  the  end  of  our  business;  therefore, 
if  we  do  not  collect  all  relating  to  it  at  one  place,  we  can  not  ascertain, 
without  much  difficulty,  the  amount  we  have  bought  or  sold  :  and  should 
we  desire  to  know  how  much  any  person  owes  us,  or  we  owe  him,  we 
would  be  obliged  to  examine  the  Day-Book  from  the  first  page  to  the 
last;  but  when  his  account  is  posted,  we  have  only  to  turn  to  a  certain 
page  appropriated  to  him  in  the  Leger,  where  we  shall  find  the  result 
ot  all  our  transactions  witn  him. 

By  the  aid  of  the  Journal,  we  deduce  from  every  transaction  in  the 
Day-Book  all  that  owes  us,  and  all  that  we  owe,  which  is  all  that  passes 
mto  the  Leger.  The  Journal,  therefore,  serves  to  convey  the  debtors 
and  creditors  from  the  Day-Book  to  the  Leger. 

Note. — To  the  Leger  belongs  an  Index,  which  is  often  a  part  of  the  book  ; 
but  it  is  more  convenient  to  have  it  separate. 

We  now  proceed  to  show  the  operation  of  posting — transferring  the 
debtors  and  creditors,  with  their  sums,  from  the  Journal  to  the  Leger, 
beginning  with  the  first  entry  in  the  Journal. 


TouRNAL — January  5. 

Sundries  Dr.  To  Sundries. 

Cash $38,000  00 

Bills  Receivable 4,670  00 

Merchandise 3,125  00 

Charles  Lawrence 140  00    $45,935  00 

To  Thomas  Blanchard 28,000  00 

To  C.  C.  Marsh 17,935  00      45,935  00 


5 

4 

10 

1 
1 


To  Post  the  above  Entry. — As  "  Sundries  Dr.  To  Sundries*^  is  only 
a  preface,  the  first  thing  that  we  see  in  the  above  entry  is  "  Cash  Dr. 


$38,000."     Cash,  therefore,  is  the  first  account  to  be  opened  in  the 
Leger.     We  appropriate  for  it  page  2,  and  write  in  the  centre  of  the 
book  (or  page)  the  word  ♦'  Cash,"  and  on  the  sides,  the  abbreviations, 
"Dr."  and  "  Cr." 
Note.— The  term  **  Dr."  is  always  on  the  left,  and  the  "  Cr."  on  the  right. 

Cash  being  a  debtor  in  the  above  entry,  we  must  make  the  entry  on 
the  debtor  side  of  the  account,  thus  :  In  the  1st  and  2d  columns,  we 
write  the  date  ;  in  the  3d  column,  the  preface  of  the  other  part  of  the 
Journal  entry,  which  is,  "  To  Sundries ;"  in  the  4th  column,  the  page 
of  the  Journal  from  which  we  take  the  entry ;  and  in  the  5th,  the  sum 
that  Cash  owes  us,  being  S3S,000.  (See  the  Cash  account  in  the  Leger, 
page  2.)  This  done,  place  the  folio  of  the  Cash  account  against  the 
word  "Cash"  in  the  Journal,  to  indicate  that  it  is  posted.  Enter  the 
title  "Cash"  in  the  Index. 

So  far,  we  have  only  posted  the  first  debtor ;  the  others,  which  are 
Bills  Receivable,  Merchandise,  and  C.  Lawrence,  we  post  in  the  same 
manner,  in  the  order  they  come,  but  on  separate  pages. 

We  now  pass  to  the  creditors  of  the  foregoing  entry,  the  first  of  which 
is  '*  Thomas  Blanchard."  For  him  we  open  an  account  on  page  1,  by 
writln"-  his  name  and  the  abbreviations  "Dr."  and  "  Cr."  As  he  is  a 
creditor  in  the  entry,  we  must  make  the  entry  on  the  creditor  side  of  the 
account ;  and  in  the  1st  and  2d  columns  we  write  the  date  ;  in  the  3d 
column,  the  preface  of  the  other  part  of  the  Journal  entry,  "  By  Sun- 
dries ;"  in  the  4th,  the  folio  of  the  Journal ;  and  in  the  5th  column,  the 
amount — $28,000.  In  the  Journal,  opposite  his  name,  place  the  page 
of  the  Leger,  to  show  that  it  is  posted. 

The  other  creditor,  C.  C.  Marsh,  is  posted  in  the  same  manner. 

As  the  Journal  presents  only  four  different  forms  of  entry,  it  will  be 
necessary  to  make  only  four  distinct  explanations  to  teach  that  part  of 
the  science  called  Posting.  Having  given  one  explanation,  we  proceed 
now  to  the  second. 

Journal — January  5  (sd  Entry  of  this  datej. 

G     Sundries  Dr.     To  Bills  Payable.  .$2,310  00 

1     Thomas  Blanchard $1,080  00 

I     C.  C.  Marsh 1,230  00    2,310  00 

To  Post  the  above  Entry. — Blanchard  &  Marsh  being  our  debtors, 
in  this  entry  for  the  sums  in  front  of  their  names,  we  return  to  their  ac- 
counts, already  opened  on  page  1,  and  in  the  1st  and  2d  columns,  on  the 
debtor  side,  we  write  the  date  ;  in  the  3d  column,  the  opposite  part  of 
the  Journal  entry,  "  To  Bills  Payable ;"  in  the  4th,  the  folio  of  the 
Journal  from  which  we  take  the  sum;  and  in  the  5th  column  we  write 
the  amounts— $1,080,  and  $1,230. 

This  done,  we  allot,  for  the  account  of  "  Bills  Payable,"  folio  6,  where 
we  open  it  by  writing,  as  before,  its  name  and  the  abbreviations  "  Dr." 
and  "  Cr."  Bills  Payable  standing  as  creditor  in  the  Journal  entry  for 
$2,310,  we  make  entry  on  the  creditor  side  of  the  account,  by  writing  in 


{      .i; 


!    |i 


24 


POSTING. 


the  first  columns  the  date ;  in  the  3(1,  the  preface  of  the  opposite  part 
of  the  Journal  entry,  "  By  Sundries ;"  in  the  4th  column,  the  folio  of  the 
Journal  from  which  we  take  the  sum ;  and  in  the  5th,  the  amount  for 
which  Bills  Payable  ought  to  be  credited — $2,310. 


6     Store-Fixtures 
2  To  Cash 


Journal — January  7. 
Dr. 


$300  00 


To  Post  the  above  Entry. — This  entry  varies  from  the  others,  be- 
cause it  consists  of  only  one  debtor  and  one  creditor — the  others  have 
more.  We  open  an  account  for  the  debtor  (Store-Fixtures)  on  folio  6, 
and  write  on  the  debtor  side  the  date  and  •'  To  Cash,"  the  page  of  the 
Journal,  "1,"  and  the  amount— "  $300."  Cash,  in  the  above  entry, 
is  the  creditor;  therefore  we  turn  to  the  Cash  account,  already 
opened  on  folio  2,  and  write,  on  the  creditor  side,  the  date  in  the 
1st  and  2d  columns,  ♦''By  Store-Fixtures"  in  the  3d,  the  page  of  the 
Journal  in  the  4th,  and  the  amount  in  the  5th — $300.  This  done,  the 
entry  is  posted. 

We  must  never  forget  to  place  the  folios  of  the  accounts  in  the  Lcgcr 
against  their  names  in  the  Journal,  when  they  have  passed  into  the 
Leger. 

The  following  Journal  entry,  the  last  the  posting  of  which  requires 
explanation  (all  others  being  posted  in  the  same  manner  as  those  al- 
leady  explained),  we  find  in  the — 

Journal — January  16. 

4     ^lerchandise  Dr.  To  Sundries.  .$3,200  00 

2  To  Cash $2,000  00 

4  To  Merchandise 1,200  00      3,200  00 

To  Post  the  above  Entry. — Turn  to  the  account  of  Merchandise, 
folio  4,  and  on  the  debtor  side  write,  as  before,  in  the  1st  and  2d  col- 
umns, the  date ;  in  the  3d,  the  preface  of  the  opposite  jiart  of  the  Jour- 
nal entry,  "  To  Sundries ;"  in  the  4th  column,  the  page  of  the  Journal; 
and  in  the  last  columns,  the  amount  for  which  Merchandise  ought  to  be 
charged  or  debited— $3,200. 

The  creditors  in  the  above  entry  are  Cash  and  Merchandise,  which 


*  Note. — The  word  "By"  does  not  appear  in  the  Journal  entries,  because 
the  names  of  the  debtors  are  always  placed  before  the  creditors.  If  their  po- 
sition was  reversed,  the  Bij  would  appear,  and  not  the  To.  If  we  make  a 
Journal  entry  v/ilh  the  debtor  first  in  order,  the  form  would  be  different,  but 
the  tneaning  would  be  the  same.     Thus,  in  the  entry  of  January  7^- 

Cash  Cr. 

By  Store-Fixtures $300  00 

This  is  the  way  the  entry  reads,  when  we  post  it  into  the  Cash  account  in 
the  Leger. 


TRIAL  BALANCE. 


25 


are  carried  to  the  Leger  by  writing  on  their  creditor  sides— in  the  first 
two  columns,  the  dates ;  in  the  3d,  the  opposite  part  of  the  Journal  en- 
try, "  By  Merchandise ;"  in  the  4th,  the  page  of  the  Journal  the  entry 
comes  from  ;  and  in  the  last  columns,  the  amounts  for  which  they  should 
be  credited. 

In  opening  accounts  in  the  Leger,  we  give  to  each  a  certain  space, 
according  to  the  business  that  we  think  we  may  have  with  the  person  or 
property ;  and  we  generally  leave  some  forty  or  fifty  of  the  beginning 
pages  of  the  Leger,  for  private  accounts,  such  as  Cash,  Mercliandise, 
Bills  Receivable,  Bills  Payable,  Discount  and  Interest,  Commission, 
Profit  and  Loss,  &c. 

Having  Journalized  and  Posted  the  transactions,  or  entries,  of  the 
month  of  January,  we  will  now  proceed  to  make  out  a  Trial  Balance. 


TRL\L  BALANCE. 

The  Trial  Balance  is  a  collection  of  all  tJae  balances  that  appear  in 
the  Leger,  exhibited  in  two  columns ;  the  <lebtor  balances  in  one  col- 
umn, and  the  creditor  balances  in  the  other. 

In  proceeding  to  make  the  Trial  Balance,  first  add  and  subtract  the 
columns  of  every  account  in  the  Leger.  Do  this  with  a  pencil,  in  small 
figures,  settmg  the  balance,  or  difference,  on  the  side  that  is  the  larger. 
Next,  we  copy  off  the  said  balances  of  the  accounts  on  a  sheet  of  paper, 
puttnig  the  debtor  balances,  with  their  names,  on  the  debtor  side,  and 
the  creditor  balances  on  the  creditor  side — in  the  following  manner : 


Dr. 


Balances  of  January  30,  1850. 


Cr. 


2 

4 
5 
6 
10 
11 
12 
13 


Cash , 

Merchandise 

Bills  Receivable 
Store-Fixtures . , 

C.  Lawrence 

O.  Otis  &  Co.... 
S.  H.  Lovell. . . 
W.Blakeley..., 


$33,205 


00 
00 


5,515 

8,61G!  00 
300  I  00 
140  j  00 
200  I  00 
250    00 


200 


00 


48,426  :  00 


1 
1 
6 

7 


T.  Blanchard 

C.  C.  Marsh...... 

Bills  Payable 

Discount  and  Int'st. 


$26,920 

16,705 

4,680 

121 


00 
00 
00 
00 


48,426 


00 


^':Z^S^«^yb.; 


!t 


96 


TRIAL  BALANCE. 


JOURNALIZING. 


27 


[ 


If  the  entries  in  tlie  Journal  have  been  posted  correctly  to  the  Leger. 
and  the  additions  and  subtractions  have  been  made  without  errors,  the 
amounts  of  both  cohimns  will  be  equal.  On  the  contrary,  if  the  totals 
are  not  equal,  it  is  certain  evidence  that  there  are  errors,  which  we  must 
endeavor  to  find  and  coriect.  Wliatever  may  be  the  nature  of  the  error, 
it  may  be  found  by  rtibrring  to  the  Journal  to  ascertain  if  the  Sundries^ 
in  every  entry,  are  addcil  c^^rrectly,  or  equal  the  amounts  extended  into 
the  last  column  ;  because,  if  the  sums  of  the  debtors  and  creditors  do 
not  equal  each  other  in  the  Journal,  they  can  not  be  equal  in  the  Leger. 
See,  also,  if  all  the  sums  have  been  posted,  or  carried  to  the  Leger  cor- 
rectly ;  and  next,  complete  the  examination  by  re-adding  and  re-sub- 
tracting all  the  accounts  or  columns,  to  ascertain  if  the  balances  are  cor- 
rect. If  the  first  examination  does  not  produce  the  result  desired,  it 
must  be  repeated  until  the  debtor  and  creditor  columns  of  the  Trial 
Balance  come  out  equal.  When  completed,  fold  it  up,  and  endorse  it, 
*  Trial  Balance  of  January  30,  1850." 

Note. — It  will  be  well  not  to  leave  the  Trial  Balance  in  the  counting-room, 
«rith  the  books,  because,  in  case  of  fire,  and  the  destruction  of  the  books,  it 
would  be  almost  as  valuable  to  us  as  the  books  themselves. 

The  Trial  Balance  proves  the  three  following  important  operations, 
but  no  other,  viz. : — 

1st.  It  proves  that  the  sums  are  carried  from  the  Journal  to  the  Leger 
correctly 

5^d.  That  the  additions  of  the  accounts  in  the  Leger  are  correct;  also 
those  in  the  Journal. 

3d.  That  the  balances  (or  differences)  of  the  accounts  in  the  Leger 
have  been  calculated  correctly. 

Of  course,  a  Tiial  Balance  docs  not  prove  Journalizing.  The  prin- 
ciple of  the  Trial  Balance  is  this :  In  every  Jr)urnal  entry,  the  debtor 
and  creditor  sums  equal  each  other ;  therefore,  if  those  same  sums  are 
transferred  correctly  to  the  Leger,  it  is  evident  that  the  debitor  and 
creditor  balances  taken  from  the  Leger,  ought  also  to  be  equal,  there 
being  no  other  sums  in  the  latter  than  those  contained  in  the  former,  and 
whatever  is  debtor  in  the  Journal  is  debtor  in  the  Leger. 


BUSINESS   OF   FEBRUARY: 

Embracing  Entries  of  twenty  four  Transactions,  relating  to — Paying  Notes  before  Due — Petty 
Expenses — Consiguiui,' — Sliippiiii?  for  account  of  others — Failure  and  Compromise — Import- 
ing Goods — Accepting  Drafts— Drafts  or  Orders  at  Sight — Buying  Vessels— Drawing  Bills 
of  Exchange — Bartering — Accommodation  Notes — Discounting  Notes — Insuring  Sliipments 
and  Vessels. 

THE    RULE. 

Every  person  or  object  that  owes  us,  is  debtor Dr. 

Every  person  or  object  that  we  owe,  is  creditor Cr. 

Apply  this  rule,  thus :  Read  and  reiJcct  well  on  the  transaction  ex- 
pressed in  the  Day-Book,  and  then  endeavor  to  discover  the  answer  to 
these  questions : — 

Who  or  what  owes  us  ?     And  write  the  answer  down  as Dr. 

Who  or  what  do  we  owe  ?    And  write  the  answer  down  as Cr. 

Day-Book — February  2. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  followino-  en- 
try in  the  Journal : — 

Bills  Payable  Dr.  To  Sundries.  .$1,080  00 

To  Merchandise $550  00 

"    Cash 525  32 

"    Discount 4  68    1,080  00 

Elucidation. — The  note  we  now  pay  and  cancel,  was  issued  by  Mr. 
Blanchard  before  this  partnership  commenced,  and  is  one  of  those  debts 
assumed  by  the  firm  ;  consequently  it  became  our  note.  (When  we  say 
our  notes,  we  mean  notes  of  which  we  are  the  authors,  or  which  we  have 
signed,  and  not  notes  belonging  to  us  as  our  property.)  The  note,  un- 
der  the  name  of  Bills  Payable,  is  debtor,  because  it  owes  us,  we  hav- 
irig  paid  it  what  we  owed  it.  Had  we  paid  a  person  what  we  owed 
him,  he  would  be  debtor ;  the  note  is  debtor  for  the  same  reason. 

Merchandise  and  Cash  are  creditors,  because  we  owe  them  for  con- 
tributing to  pay  our  note  for  us. 

We  have  an  account  called  Discount  and  Interest,  which  we  consider 
a  branch  of  our  business,  and  which  we  treat  as  an  individual — making 
it  debtor  when  it  owes  us,  and  creditor  when  we  owe  it.  In  this  trans- 
action. Discount  paid  a  part  of  our  note  for  us ;  therefore  we  owe  it, 
and  it  is  a  creditor  for  $4.68 :  Discount  has  produced  us  $4.68. 


ill' 


S8 


JOURNALIZING. 


Note. — The  transactions  of  February  are  not  as  simple  as  those  of  January. 
If  the  reader  finds  it  difficult  to  understand  them,  he  had  better  rejournalize 
January  before  he  proceeds  with  February. 

Day-BooK — FeiiRUARY  2    (2d  entr>-  of  this  date). 

The  second  transaction  of  this  date  in  the  Day-Book  gives  the  follow- 
ing entry  in  the  Journal : — 

Store-Expenses  Dr. 

To  Cash $G5  00 

Elucidation. — The  various  incidental  expenses  of  the  store,  such  as 
rent,  clerk-hire,  advertising,  fuel,  gas,  &:c.,  form  a  branch  of  our  busi- 
ness, which  we  call  "  Store-Expenses." 

Store-Expenses  are  debtor,  because  they  owe  us  what  they  have  cost 
us.  We  are  debtor  to  Cash  for  liaving  paid  the  amount  of  those  ex- 
penses for  us ;  therefore,  that  branch  of  our  business  called  Store-Ex- 
penses is  the  debtor,  and  Cash  is  the  creditor. 

Day-Book — February  4. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en 
try  in  the  Journal : — 

.  ..    Shipment  to  New  Orleans  Dr.         To  Sundries.  .$1,822  22 

^-^  To  Merchandise $1,722  22 

"    Cash 100  00    1,822  22 

Elucidation. — The  properly  shipped  in  this  transaction  owes  us  for 
the  amount  it  has  cost  us  in  its  jnesent  situation,  which  is  $1,822.22. 
The  consignees  in  New  Orleans  do  not  owe  us,  because  we  have  not 
sold  the  goods  to  them :  the  goods  are  still  ours,  being  merely  sent  to 
them  to  be  sold  for  us.  No  one  can  owe  us  for  anything  which  is  ours ; 
there  must  be  a  change  in  the  ownership. 

We  owe  to  Merchandise  and  Cash  for  having  contributed  their  sums 
in  making  up  the  shipment. 

When  the  property  shipped  belongs  to  us,  we  give  it  the  title  of 
**  Shipment"  to  such  a  place,  or  "  Consignment"  to  such  a  person. 

Day-Book — February  9. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

Sundries  Dr.     To  William  Blakeley.  .$200  00 

Cash $100  00 

Profit  and  Loss 100  00     200  00 

Elucidation. — "  Profit  and  Loss"  is  the  name  which  our  business  re- 
ceives in  our  books.  Our  business,  in  this  transaction,  goes  against  us,  and 
causes  our  losing  $100  ;   therefore  it  owes  us,  and  consequently  is  debtor. 

Cash  is  debtor,  because  in  it  W.  Blakeley  has  paid  us  half  the  debt  he 
owed. 


JOURNALIZING.  29 

W.  Blakeley  is  creditor,  because  we  owe  him,  he  having  paid  us  what 
he  owed,  and  we  having  accepted  half  of  his  debt  for  the  whole.  The 
sum  that  Blakeley  owed  us  before,  Profit  &  Loss  and  Cash  owe  us  now. 

Day-Book — February  12. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  followino-  en- 
try in  the  Journal : — 

Merchandise  Dr.  To  Sundries.  .$1,240  00 

To  Charles  Lawrence $  140  00 

"   Bills  Receivable 1,000  00 

"    Cash 100  00    1,240  00 

Elucidation.-— Merchandise  has  cost  us  $1,240,  for  which  it  owes  us; 
and  therefore  it  is  debtor. 

C.  Lawrence  is  creditor,  because  we  owe  him  for  havino-  drawn  on 
him  for  $110,  which  he  will  pay;  if  not,  the  draft  will  be  returned  to 
us,  and  another  entry  will  be  required. 

We  say  nothing  of  the  draft,  because  it  is  not  in  our  favor,  nor  is  it 
against  us ;  we  do  not  owe  it,  nor  does  it  owe  us. 

The  note  which  we  held  against  O.  Otis  &  Co.,  and  which  owed  us, 
has  now  paid  us  what  it  owed,  it  having  paid  for  us  part  of  Haven  & 

Smith's  bill :  therefore  we  must  credit  the  note  under  its  former  name 

*«  Bills  Receivable." 

Cash  is  creditor,  because  we  owe  that  species  of  property  for  paying 
the  sum  of  $100  for  us  toward  this  purchase. 

Day-Book — February  12  (2d  Entry  of  this  date). 

The  second  transaction  of  this  date  in  the  Day-Book  gives  the  follow- 
ing entry  in  the  Journal : — 

William  Blakeley  Dr. 

To  Bills  Receivable $500  00 

Elucidation. — Mr.  Blakeley  is  debtor,  because  he  owes  us  for  the 
amount  of  his  note  which  we  hold  against  him,  which  is  due  and  not 
paid. 

The  note  is  creditor,  because  its  time  having  expired,  it  has  paid  us 
by  giving  us  a  new  claim  on  its  author — W.  Blakeley. 

Note.— When  notes  become  due  and  remain  unpaid,  the  best  way  is  to 
charge  their  amounts  to  their  drawers,  or  those  who  ought  to  pay  them  ;  for 
It  is  then  that  those  parties  owe  us.  Before  the  notes  were  due,  we  could  de- 
mand nothing  of  the  persons ;  the  notes  alone  were  responsible. 

Day-Book — February  13. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  followino-  en- 
try in  the  Journal : —  ° 


!'! 


f 


f.i;' 


I    I 


80  JOURNALIZING. 

Merchanaise  Dr.  To  Sundries.  .$6,533  11 

To  Walter  Howard $4,888  89 

"    Bills  Payable 1,222  22 

"    Cash 422  00    6,533  11 

Elucidation. — Merchandise  owes  us  for  the  amount  it  has  cost  us, 
which  consists  of  its  first  cost  in  London,  the  amount  of  duties,  and  the 
freight — the  last  two  being  ])aid  here. 

W.  Howard  is  creditor,  because  we  owe  him  for  the  amount  of  the 
goods  he  sends  to  us  according  to  our  request. 

In  changing  the  oei,100  sterling  to  dollars,  the  c£l  is  calculated  at  the 
old  par  value — S4.44.  We  agree  with  many  in  thinking  that  a  value 
nearer  the  true  one  should  be  used  in  transactions  involving  English 
money ;  but  it  is  difficult  to  change  a  custom.  The  present  par  value 
of  the  pound  sterling  is  $4.84.    (See  calculations  at  the  end  of  this  book.) 

Bills  Payable  are  creditor,  because  we  owe  our  notes  which  we  have 
issued  against  us,  in  payment  of  the  duties :  the  notes  pay  the  duties 
for  us. 

Note. — Formerly,  the  revenue-law  allowed  credit  on  duties,  and  notes  or 
bonds  were  taken  at  the  customhouses;  but  the  duty  on  imports  is  now  paya- 
ble in  cash  only. 

To  Cash  we  owe,  because  it  has  paid  the  freight  and  charges  on  the 
goods  for  us.     Cash,  therefore,  is  a  creditor. 

Day-BooK — February  13   (2d  Entry  of  this  date). 

The  second  transaction  of  this  date  in  the  Day-Book  gives  the  follow- 
ing entry  in  the  Journal : — 

Sundries  Dr.  To  Sundries. 

Bills  Receivable $251  37 

Profit  and  Loss 250  00  $501  37 

To  William  Blakeley 500  00 

"    Interest 1  37     501  37 

Elucidation. — First,  read  the  transaction  carefully,  with  a  view  to 
find  what  owes  you  ;  and  whatever  you  think  owes  you,  write  it  down 
as  Dr.     Then  read  again,  to  find  what  you  owe;  and  write  that  down 

as  Or. 

The  draft  or  order  drawn  on  S.  H.  Lovell,  and  accepted  (agreed  to), 
owes  us  for  the  amount  it  shows,  including  the  $1.37  for  interest.  Our 
claim  for  the  $251.37  consists  in  the  draft,  which  must  owe  us  until  its 
time  expires;  Lovell  may  then  owe  us,  but  he  does  not  now. 

Our  business,  under  the  name  of  'Profit  and  Loss,  owes  us,  because 
it  has  been  the  cause  of  the  loss  we  have  sustained  in  this  settlement 
with  W.  Blakeley. 

We  owe  to  Interest,  or  Interest  is  a  creditor,  because  that  branch  of 
our  business  has  produced  us  $1.37,  which  sum  is  included  in  the  note. 


JOURNALIZING. 


dt 


Wm.  Blakeley  is  creditor,  because  we  owe  him  for  paying  us  what  he 
owed — the  balance  of  his  account.  He  has  paid  us  in  full,  although  we 
have  received  only  half,  because  we  have  accepted  that  half  for  the 
whole ;  he  therefore  must  be  credited  for  what  he  owed  us. 

Day-Book — February  16. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

Walter  Howard  Dr. 

To  Bills  Payable $4,444  44 

Elucidation. — In  accepting  this  draft  we  become  responsible  for  its 
amount ;  therefore  W.  Howard  owes  us.  To  draw  on  us  is  to  order 
us  to  pay  a  certain  sum ;  and  accepting  the  draft  is  agreeing  to  do  so. 

Bills  Payable,  the  name  given  to  the  draft  that  we  have  accepted,  are 
creditor,  because  we  owe  the  draft  which  we  have  issued  against  us,  and 
which  we  shall  pay  at  its  maturity,  in  whosever  possession  it  may  be. 

Note. — To  accept  a  draft,  is  to  write  your  name  across  its  face.  If  the  draft 
reads  so  many  days  after  sight,  the  date  should  be  with  the  signature,  thus: — 

"Accepted,  February  16,  1850. 

"Blanchard  &  Marsh." 

Day-Book — February  17. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

Bills  Payable  Dr. 

To  Merchandise $1,500  00 

Elucidation. — The  note,  in  this  transaction,  was  issued  by  us  some 
time  since,  and  held  us  responsible ;  now  we  have  paid  it,  it  owes  us, 
and  becomes  our  debtor. 

Merchandise  is  the  property  in  which  we  paid  the  amount  of  the  note  ; 
therefore  we  owe  it  for  paying  our  note  for  us. 

Note. — We  have  said,  that  when  we  pay  a  person  a  sum  that  we  owed  him, 
he  owes  us,  or  becomes  our  debtor ;  so,  when  we  pay  our  note,  for  the  same 
reason  it  owes  us,  or  becomes  our  debtor. 

Day-Book — February  20. 

The  transaction  of  this  date  in  the  Day-Book  gives  us  the  foUowinor 
entry  in  the  Journal : — 

Walter  Howard  Dr.  To  Sundries.. $2,974  29 

To  Merchandise $2,730  00 

"    Cash 160  15 

"    Commission 84  14    2,974  29 

Elucidation. — W.  Howard  owes  us,  because  the  goods  were  shipped 
at  his  request,  or  according  to  his  order ;  he  therefore  is  debtor. 


I  i 


It 


32  JOURNALIZING. 

To  McrcliaiKlise  we  are  inclebtetl,  because  we  have  sold  it,  and  it  lias 
produced  us  $2,730,  for  which  amount  Howard  owes  us. 

To  Cash  we  are  indebted,  because  it  paid  the  amount  of  insurance 
and  other  expenses  for  us. 

To  Commission,  as  a  branch  of  our  business,  we  are  indebted,  because 
it  produces  us,  in  this  transaction,  $84.14. 

The  amount  of  the  creditor  sums  in  the  above  entry  equals  the  debtor 
guni — that  is,  the  sum  that  Howard  owes  us.  As  we  have  before  said, 
the  debtor  and  creditor  sums  will  and  must  always  be  equal. 

Day-Book — February  21. 

The  transaction  of  this  date  in  the  Day-Book  gives  us  the  following 
entry  in  the  Journal : — 

Merchandise  T>r. 

To  Merchandise $1»530  00 

Elucidation-. — There  are,  in  this  transaction,  two  kinds  of  merchan- 
dise ;  one  we  have  bought,  and  the  other  we  have  sold.  That  which  we 
have  bouirht,  owes  us  the  value  it  has  cost  us ;  and  to  that  we  have  sold, 
we  owe  for  the  value  it  has  produced.  One  kind  is  debtor,  and  the 
other  is  creditor. 

Day-Book — February  21   (2d  Entry  of  this  date). 

The  transaction  of  this  date  in  the  Day-Book  gives  us  the  following 
entry  in  the  Journal : — 

Bills  Receivable  Br. 

To  Bills  Payable $800  00 

Elucidvtion. — In  this  transaction,  we  exchange  notes  with  Mr.  Ber- 
nard. His  note  is  in  our  favor,  is  called  Bills  Receivable,  and  oices  us 
for  the  sum  it  is  drawn  for.  ,,  , 

Our  note  stands  out  against  us,  is  called  Bills  Payable,  and  we  owe  %t 
for  the  sum  it  is  drawn  for. 

Note.— Notes  that  originate  in  this  wav,  are  made  and  exchanged  for  the 
purpose  of  fretting  endorsers  and  having  the  notes  discounted.  In  the  above, 
we  endorse  for  Mr.  Bernard,  and  he  endorses  for  us. 

Day-Book — February  23. 

The  transaction  of  this  date  in  the  Day-Book  gives  us  the  following 
entry  in  the  Journal : — 

gu^^aries  Dr.         To  Merchandise. -$1,620  00 

Bills  Receivable ^  ^0^  00 

Cash  120  00 

.Tame'sTrum'an •   1>QQQ  OQ    I'^^O  00 

Elucidation. — Here,  as  there  are  more  than  one  debtor,  we  head 
them  with  the  word  **  Sundries." 


JOURNALIZING.    *  '  33 

Bills  Receivable  is  the  title  given  to.  the  note  that  we  hold  against  J. 
Truman.     This  note  owes  us  $500. 

Cash  owes  us  for  the  amount  paid  to  us  in  that  kind  of  property. 

J.  Truman  owes  us,  because  the  balance  of  the  bill  of  goods  sold  to 
him  remains  unpaid. 

To  Merchandise  we  acknowledge  ourselves  indebted,  because  it  has 
produced  us  the  sum  of  $1,620. 

Day-Book — ^February  24. 

The  transaction  of  this  date  in  the  Day-Book  gives  us  the  followino' 
entry  in  the  Journal : — 

Sundries  ,  Dr.     To  Bills  Receivable.  .$2,000  00 

Cash $1,969  00 

Discount 31  00    2,000  00 

Note. — To  get  a  note  discounted,  means  to  obtain  the  money  for  it  before  it 
as  due.  The  bank  deducts  from  the  amount  of  the  note  a  certain  sum  for  in- 
terest or  discount,  according  to  the  time  the  note  may  have  to  run,  and  pays  us 
the  balance  in  cash. 

Elucidation. — Cash  owes  us,  because  the  sum  the  bank  has  paid  us, 
is  paid  to  us  in  that  property.  The  kind  of  property  called  Cash,  owes 
us  to-day  $1,969  more  than  it  owed  us  yesterday,  because  we  have  so 
much  more  value  invested  in  it. 

Discount  has  cost  us,  in  this  transaction,  $31 ;  therefore  it  owes  us. 

The  note  has  paid  us  the  sum  it  owed  ;  therefore  it  is  a  creditor.  Al- 
though we  do  not  get  the  face  of  the  note,  we  consent  to  take  less ;  and 
therefore  the  note  must  be  credited  for  the  whole  amount  it  owed — 
$2,000. 

It  will  be  seen  that  Cash  and  Discount  are  the  objects  which  owe  us 
now,  the  amount  which  Bills  Receivable  owed  us  before. 

Day-Book — February  25. 

The  transaction  of  this  date  in  the  Day-Book  gives  us  the  following 
entry  in  the  Journal : — 

Schooner  Josephine  Dr.  To  Sundries.  .$5,000  00 

To  Walter  Howard $2,222  22 

"    Exchange 177  78 

"    Cash 2,600  00    5,000  00 

Elucidation. — The  schooner^  owes,  and  is  debtor,  because  she  has 
cost  us  $5,000. 

We  are  debtor  to  W.  Howard,  because  we  have  drawn  on  him  for 
$2,222.22.  To  draw  on  a  person,  is  to  order  him,  by  means  of  a  written 
order,  to  pay  a  certain  sum  for  us. 

Exchange  is  creditor,  because  that  branch  of  our  business  denomina- 
ted Exchange,  has  produced  us  $177.78.  We  sold  the  draft,  or  bill  of 
exchange,  at  a  premium,  which  we  consider  a  gain  arising  from  the 

5 


I  {'il-t 


34  JOURNALIZING. 

advantageous  position  of  funds.     The  premium  goes  to  Capt.  Davis,  in 
part  payment  of  the  schooner. 

Cash  is  creditor,  because  we  owe  it  as  a  property  for  pavino-  part  of 
the  $5,000.  i    ^    ol 

Note  1.— Sometimes  the  gain  or  loss,  arising  from  the  sale  of  drafts  or  bills 
of  exchange,  belongs  to  the  one  who  draws,  and  sometimes  to  the  party  drawn 
on,  or  remitted  to :  this  depends  on  who  placed  the  funds  to  draw  against,  and 
other  circumstances.  In  this  series  of  transactions,  we  shall  suppose  the  pre- 
mium, or  discount,  to  be  the  gain  or  loss  of  the  drawer,  unless  otherwise  ex- 
pressed. 

Note  2. — It  should  be  understood  that,  when  we  see  it  stated  that  exchange 
on  England  is  at  8  or  9  per  cent,  premium,  it  is  really  only  about  par. 
The  premium,  being  calculated  on  the  old  par  value  of  $4.44  to  the  £,  must 
include,  under  the  name  of  premium,  the  difference  between  the  nominal  value 
(S4.44)  and  the  true  value  ($4.84)— about  40  cents. 

Day-Book — February  26. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : —  ^ 

William  Evans  Dr. 

To  James  Truman $1,000  00 

Elucidation. — We  receive  an  order  at  sight  on  Wm.  Evans,  who 
accepts  but  does  not  pay  it ;  and  the  order  being  due,  it  is  charged  in 
account  by  mutual  consent.  Evans  owes  us,  because  the  order  is  due 
and  not  paid. 

To  J.  Truman  we  owe  for  the  amount  of  the  order  he  has  given  us 
on  W.  Evans. 

Note. — We  see  in  this  transaction,  also  in  the  one  of  the  25th,  an  impor- 
tant paper  received  in  one  case,  and  delivered  in  the  other,  which  makes  no 
part  of  the  Journal  entry:  the  reason  is,  that  these  papers  do  not  owe  us,  nor 
do  we  owe  them.  Do  not,  therefore,  trouble  yourself  with  any  such  rule  as, 
**  What  you  receive  is  debtor  to  what  you  give." 

Day-Book — February  27. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  followino-  en- 
try in  the  Journal : — 

Shipment  to  Port  au  Prince  Dr.         To  Sundries.. S3,908  00 

To  Merchandise $1,200  00 

"    Bills  Payable 2,190  00 

"    Charles  Lawrence 288  00 

"    Schooner  Josephine 230  00    3,908  00 

Elucidation. — The  shipment  or  consignment  owes  us,  because  it  has 
cost  us  the  amount  of  the  various  items  of  which  it  is  composed. 

To  the  creditors,  being  more  than  one,  we  give  the  preface  of  "  Sun- 
dries." 

H.  B.  Walker  &  Co.,  to  whom  the  goods  are  consigned,  do  not  owe 
us,  because  the  goods  are  still  ours. 


TRIAL  BALANCE. 


35 


To  Merchandise  we  are  indebted  f  )r  contributing  toward  the  ship- 
ment the  sum  of  $1,200 — which  goods  are  taken  from  our  store. 

To  Bills  Payable  we  owe  for  the  amoufit  of  our  note  given  to  Dallet 
&  Co.,  in  payment  of  our  purchase  of  them. 

To  our  schooner  we  owe  for  the  value  of  the  freight  (calculated  in  ad- 
vance) on  the  goods,  which  she  has  produced  or  saved  us. 


Day-Book — February  28. 

The  first  transaction  of  this  date  in  the  Day-Book  gives  the  following 
entry  in  the  Journal : — 

Shipment  to  Port  au  Prince  Dr.  To  Sundries.  .$201  56 

To  Bills  Payable $81  56 

"    Cash ' 120  00     201  56 

Elucidation. — The  shipment  owes  us,  because  it  has  cost  us  for  the 
insurance,  and  for  various  expenses  in  shipping  the  goods. 

Bills  Payable  are  creditor,  because  we  owe  our  note,  given  to  the  in- 
surance company  in  payment  for  the  premium  or  cost  of  insurance. 

Cash  is  creditor,  because  we  owe  it  for  paying  for  us  the  expenses. 

Day-BooK — February  28  (2d  Entry  of  this  date).  ♦ 

The  second  transaction  of  this  date  in  the  Day-Book  gives  the  follow- 
ing entry  in  the  Journal : — 

Schooner  Josephine  Dr. 

To  Cash $26  00 

Elucidation. — The  insurance  is  an  expense  on  the  schooner,  and  she 
owes  us  for  it ;  therefore  she  is  debtor. 

Cash  is  creditor,  because  it  was  cash  that  paid  the  insurance  for  us. 


r? 

1 


TRIAL  BALANCE. 

Having  Journalized  the  transactions  of  February,  the  pupil  will  now 
proceed  to  post — that  is,  to  enter  in  the  Leger  from  the  Journal,  as  ex- 
plained at  the  end  of  January.  When  the  posting  is  finished,  he  will 
make  a  Trial  Balance.  In  adding  the  accounts  in  the  Leger,  the  sums 
of  January  must  be  included.  The  following  is  the  Trial  Balance  of 
the  Leger  at  this  date  ; — 


U' 


36 


Db, 


TRIAL  BALANCE. 


Balances  of  February  28,  1850. 


Cr. 


2 

4 

5 

6 

7 

8 

8 

11 

12 

13 

16 

16 

Cash 

$31,120 

2,905 

8,987 

300 

4,951 

65 

350 

200 

250 

307 

1,822 
4,109 

53 
89 
37 
00 
00 
09 
00 
00 
00 
62 

22 
56 
19 

1 
1 
6 
7 
9 
9 
10 
14 

T.  Blanchard 

C.  C.  Marsh 

Bills  Payable 

Discount  and  Int'st. 

Commission 

Exchange 

C.  Lawrence 

W.Evans 

$26,920 

16,705 

10,838 

96 

84 

177 

288 

260 

00 

00 
00 

05 
14 
78 
00 
00 

19 

Merchandise 

Bills  Receivable . . . 

Store-Fixtures 

Schooner  Josephine 

Store-Expenses  — 

Profit  and  Loss  — 

0.  Otis  &  Co 

S.H.  Lovell 

W.  Howard 

Shipment  to  New  ) 
Orleans \ 

Shipment  to  Port  } 
au  Prince ^ 

•          y^ 

55,369 

55,369 

BUSINESS  OF  MARCH: 

Embracing  Entries  of  twenty-six  Transactions,  relatinpr  to — Delivering  per  Onler— Receiving 
Consignments — Paying  Charges  on  Conaignments — Selling  Consignments — Sellinj;  at  Auc- 
tion— Collecting  Notes  and  Acceptances — lieceiving  Notes  with  Interest— Allowing  for 
DamageH  in  Sales — Paying  An-eptances — Closing  Consignments — Rendering  Acrount  Sale* 
— Receiving  Account-Sales— Buying  in  Joint  Account— Selling  in  Joint-Acrount— Hereiv- 
ing  our  Note  before  Due — Paying  Money  to  a  Partner — Buying  Bills  of  Kxrhanf.'e — Closing 
Account  of  Sales  iu  Joint- Account — Rendering  Account  Sales  of  Merchandise  in  Joint- Ac- 
count 

THE   RULE. 


Dr. 

Cr. 


Every  person  and  thing  that  oives  «*  is 

Every  person  and  thing  that  we  owe  is 

The  best  method  of  applying  the  above  rule,  is  the  following: — 
First,  understand  well  the  nature  of  the  transaction,  make  yourself 

familiar  with  its  details,  consider  yourself  the  person  that  performs  it 

Dr  to  whom  it  occurs,  and  then  ask  yourself — 

Who  or  what  owes  me  ?    And  write  down  the  answer  as  the Dr. 

Who  or  what  do  I  owe  1    And  write  down  the  answer  as  the Cr. 

The  sums  that  belong  to  these  answers  are  those  that  the  person  or 
whing  in  reality  owes  us,  and  those  that  we  owe. 


JOURNALIZING. 
Day-Book — Transaction  of  March  2. 


37 


Elucidation.-— C.  Lawrence  owes  us  in  this  transaction,  because  on 
his  order  we  delivered  the  goods  to  W.  Blakeley. 

Merchandise  is  creditor,  or  we  owe  to  Merchandise,  because  it  pro- 
duces us  value  to  the  amount  of  $288. 

When  we  pay  a  certain  sum  by  order  of  any  person,  it  is  evident  that 
that  act  makes  him  owe  us.  The  order  is  no  more  than  a  receipt  to 
show  that  we  have  executed  it.  It  has  not  the  requisites  to  make  it  a 
note  in  our  favor  or  against  us ;  it  was  not  issued  by  us  with  our  signa- 
ture, as  it  woiild  have  been  had  it  been  our  acceptance,  nor  does  it 
promise  to  pay  us  its  sum  at  any  future  time. 

Day-Book — 2d  Transaction  of  March  2. 

The  transactions  relative  to  which  no  explanations  are  given,  are  con- 
sidered sufficiently  simple  not  to  require  them,  provided  the  pupil  has 
studied  with  attention  those  of  January  and  February. 

Day-Book — Transaction  op  March  3. 

Elucidation. — The  title  of  "  De  Nones  Consignment"  is  given  to 
the  goods  that  Mr.  De  Nones  has  sent  to  us  to  be  sold  for  him,  or  f()r 
his  account.  This  consignment  can  owe  us  only  for  the  expenses  that 
have  been  incurred  on  it  since  in  our  hands — the  freight  and  duties. 

Cash  is  creditor,  because  in  it  we  paid  the  freight  and  duties. 

We  can  not  credit  J.  De  Nones  for  the  amount  of  the  goods  he  con- 
signs to  us  ($2,700),  because  we  do  not  owe  him  that  sum.  The  goods 
are  still  his ;  we  have  neither  bought  nor  ordered  them,  and  we  can  not 
owe  a  person  for  what  remains  his.  When  we  have  sold  the  consign- 
ment, and  rendered  to  him  an  account  of  the  sales,  then  we  may  owe 
him  the  net  proceeds,  but  not  before. 

Day-Book — Transaction  of  March  5. 

Elucidation. — The  acceptance  which  we  have  held  until  this  date 
against  Otis  &  Co.,  became  due  this  day,  and  is  paid  in  cash. 

Cash  now  owes  us  for  the  sum  that  heretofore  the  acceptance  owed; 
therefore  Cash  is  debtor. 

The  acceptance  having  paid  us  what  it  owed  us,  becomes  a  creditor. 

Day-Book — 2d  Transaction  of  March  5. 

Elucidation. — The  balance  of  O.  Otis  &  Co.'s  account,  in  our  favor, 
is  $700,  which  is  considered  due  in  cash ;  therefore,  in  giving  us  a  note 
at  sixty  days,  it  should  be  drawn  for  the  sum  that  will  be  due  sixty  days 
hence — that  is,  the  note  should  include  interest  correspondino-  to  its 
credit  or  time.  The  note  owes  us  for  the  said  balance,  and  alscTfor  the 
amount  of  interest;  for  both  of  which  it  is  drawn  or  written. 

Interest  is  creditor,  because  we  owe  it  for  producing  us  $7.35. 


»'     ■f 


38 


JOURNALIZING. 


JOURNALIZING. 


39 


ii 


f1 


1 


Note. — When  Interest  is  in  our  favor,  it  is  a  creditor,  because  we  owe  it  for 
the  value  it  produces.  When  it  is  against  us,  it  is  a  debtor,  because  it  owes  us 
for  the  sum  it  costs  us. 

To  O.  Otis  &  Co.  we  are  indebted  for  the  balance  of  their  account, 
which  they  liave  paid  us  in  their  note ;  for  which  balance  the  note  is 
now  our  debtor. 

Day-Book — Transaction  of  March  7. 

Elucidation. — In  this  transaction,  we  agree  to  an  allowance  in  favor 
of  C.  Lawrence,  on  a  purchase  of  a  former  date.  The  amount  of  the 
allowance  we  do  not  pay ;  therefore  wc  owe  him,  and  he  becomes  a 
creditor  for  the  same. 

Day-Book — Transaction  of  March  9. 

Elucidation. — The  acceptance  now  paid  received  the  title  of  "  Bills 
Payable,"  when  we  accepted  it  (February  IG),  since  which  time  it  has 
stood  out  against  us  as  our  note.  This  acceptance  now  owes  us,  be- 
cause we  have  paid  it  what  we  owed  it. 

W.  Howard  does  not  owe  us  in  this  transaction,  because  the  draft, 
now  paid,  was  our  acceptance.  At  the  time  we  put  our  name  on  it,  he 
began  to  owe  us,  and  then  became  our  debtor. 

Da\-Book — Transaction'  of  March  IC. 

Elucidation. — Commission  owes  us  nothing  in  this  transaction,  be- 
cause in  reality  we  sell  the  goods  for  only  the  sum  that  we  receive  for 
them — being  the  net  proceeds,  $1,233.27  ;  for  which  sum  Cash  owes  us, 
and  we  owe  to  the  consignment. 

Note. — Ii  is  not  necessary  to  give,  in  the  Day-Book,  the  particulars  of  the 
quantity,  quality,  and  prices,  of  goods  sold — these  belong  more  to  the  Sales- 
Book  than  the  Day-Book ;  but  as  it  is  not  thought  necessary  to  continue  the 
Sales-Book  beyond  a  {gw  examples,  the  former  book  is  rendered  more  complete 
by  its  embracing  some  description  of  the  goods  sold,  particularly  when  those 
goods  are  not  ours. 

Day-Book — 2d  Transaction  of  March  10. 

Elucidation. — To  receive  merchandise  to  our  account,  means  that 
we  have  bought  it,  or  taken  it  as  our  own.  And  now,  since  the  olives 
are  ours,  we  give  them  the  title  of  Merchandise ;  and  as  they  owe  us, 
we  call  them  debtor. 

To  the  consignment  we  owe,  because  it  has  produced  us  the  olives, 
or  their  value. 

Day-Book — Transaction  of  March  12. 

Elucidation. — The  merchandise,  or  olives,  sold  to  P.  Harris  in  this 
entry,  does  not  belong  to  the  consignment  of  De  Nones,  having  been 
made  ours  in  a  previous  entry. 


Day-Book — Transaction  of  March  14. 

Elucidation. — In  order  to  ascertain  the  amount  of  the  sales  of  this 
consignment,  and  to  see  if  it  agrees  with  the  Commission  Sales-Book,  it 
is  necessary  to  post  all  the  sums  belonging  to  the  consignment,  from  the 
Journal  to  the  Leger,  and  to  compare  the  Leger  account  with  the  ac- 
count in  the  Sales-Book. 

The  entry  under  this  date  in  the  Day-Book  shows  that  we  have  made 
an  **  Account-Sales"  of  the  goods  belonging  to  J.  De  Nones,  for  the 
purpose  of  closing  the  account  of  those  goods,  and  transftjrring  the  bal- 
ance to  accounts  where  it  more  properly  belongs. 

In  Journalizing  this  entry,  we  say  that  we  owe  to  the  following:— 

To  Commission  we  owe,  because  it  is  a  branch  of  our  busi- 
ness, and  which  has  produced  us $215  71 

To  Store-Expenses  we  owe,  because  that  branch  of  our 
business  has  produced  us  the  amount  of  our  charges  for 
storage,  &c 52  24 

To  Joseph  De  Nones  we  owe  for  the  net  proceeds  of  the 

goods  we  have  sold  for  him 3,531  32 

Amount  that  we  owe 3,799  27 

which  makes  the  balance  of  the  account. 

Now,  then,  the  consignment  must  owe  us,  and  become  debtor  for  the 
balance  that  appears  on  its  credit  side,  because  we  divide  said  balance, 
and  carry  it  to  the  credit  of  the  different  accounts  above  expressed.  This 
last  entry,  when  posted,  will  close  the  consignment. 

The  "Account  Sales,"  which  we  render  to  J.  De  Nones,  will  be  found 
among  the  Forms,  at  the  end  of  this  volume. 

Day-Book — Transaction  of  March  16. 

Elucidation. — Lockhart  &  Arrott  owe  us  for  the  amount  of  the  net 
proceeds  of  our  shipment  to  them,  they  having  sent  us  an  account  of  the 
sales  without  remittance  of  funds. 

"  Shipment  to  N.  Orleans"  being  the  title  we  gave  the  goods  when  we 
shipped  them,  we  should  now,  in  speaking  of  that  property,  use  the 
same  name.  Shipment  to  New  Orleans  is  creditor,  because  we  owe  it 
the  sum  it  has  produced  us,  and  for  which  L.  &  A.  are  responsible. 

Note. — Here  we  have  the  same  transaction  as  that  of  the  previous  entry, 
with  the  difference  only,  that  in  one  case  we  send  away  an  "Account-Sales," 
and  in  the  other  we  receive  one. 


Day-Book — Transaction  of  March  18. 

Elucidation. — Cash  owes  us  for  the  sum  that  P.  Harris  has  advanced 
to  us ;  and  we  owe  him,  because  we  have  not  yet  used  the  money  for  the 
object  for  which  he  gave  it  to  us. 


■**  i 


I 


I 


M 


11 


■ 


\ 


^  • 


40 


JOURNALIZING. 
Day-Book — Transaction  op  March  20. 


Elucidation. — We  give  the  title  of  "Merchandise  Company  1,"  or 
**  Company  1  Merchandise,"  to  the  flour  which  we  have  bought  in 
joint  account  with  Mr.  Harris — a  name  to  distinguish  it  in  our  books 
from  goods  that  belong  solely  to  us. 

The  flour  does  not  owe  us  for  its  whole  cost,  but  only  for  the  cost  of 
our  half  of  it— $2,000  :  it  is  not  responsible  to  us  for  Mr.  Harris's  half, 
or  what  it  costs  him. 

P.  Harris  owes  us  for  his  part  of  the  purchase,  because  we  paid  for 
his  part  of  the  flour. 

Day-Book — Transaction  op  March  21. 

Elucidation. — The  flour  costs  us  only  half  of  the  amount  received, 
and  it  can  owe  us  no  more  than  our  interest  in  it — $1,187.50.  We  have 
received  twice  that  amount ;  but  Journalizing  is  not  to  show  what  we 
receive  or  deliver,  but  what  are  our  debtors  and  creditors. 

Mr.  Harris  is  creditor,  because  we  owe  him  for  our  half  of  the  flour : 
he  furnishes  our  half  for  us.  Were  we  to  credit  Mr.  Harris  for  all  this 
flour,  we  would  be  making  the  same  entry  as  if  we  had  bought  it  all  of 
hini;  which  is  not  the  case,  because,  it  being  on  joint  account,  half  re- 
mains his.  It  being  in  our  store  makes  no  difference  in  the  proprie- 
torship. 

Day-Book — Transaction  op  March  23. 

Elucidation. — In  the  transaction  of  this  date,  we  receive  our  own 
note  in  part  payment  for  the  flour ;  and  as  the  note  is  not  due,  we  are 
allowed   discount  for  the  time  it  wants  of  being  due.     Discount  is 

therefore  in  our  favor,  and  must  be  credited  for  what  it  produces  us 

$9.10. 

Bills  Payable  owes  us  for  the  amount  it  was  drawn  for — $2,100 — al- 
though we  do  not  give  that  sum  for  it,  yet  with  what  we  give  we  pay' 
the  whole. 

The  flour,  under  the  name  of  «*  Company  1,  Merchandise,"  is  cred- 
itor, because  it  produces  us  $3,000. 

Note. — Accounts  of  merchandise  in  company,  or  in  joint  account,  generally 
show  on  the  debtor  side  only  half  of  the  amount  purchased,  while  on  the 
credit  side  they  show  the  tota'l  sales.  This  may  appear  irregular,  but  it  is  not 
so.  The  property  can  not  be  debtor  (that  is,  owe  us)  for  more  than  cur  inter- 
est in  it,  nor  can  it  be  debtor  in  our  books  for  what  it  may  have  cost  the  other 
partner.  But  when  we  sell  the  goods,  they  produce  into  our  hands  the  total 
amount  of  the  sales,  and  consequently  we  have  a  very  good  reason  for  credit- 
ing them  for  the  same. 

Day-Book — Transaction  op  March  2G. 

Elucidation. — The  bill  of  exchange,  which  we  have  bought  for  the 
purpose  of  making  a  remittance  to  London,  owes  us  for  its  face  only, 
and  not  for  the  premium  we  have  paid  on  it. 

Exchange,  as  a  branch  of  our  business,  owes  us  for  what  it  has  cost 


JOURNALIZING. 


41 


us — being,  in  this  case,  the  difference  between  the  old  par  value  of  the 
<£,  and  the  amount  the  <£  in  Liverpool,  sells  for  here. 

Note. — It  should  be  borne  in  mind,  that  the  premium  here  paid  is  only  an 
apparent  premium— a  premium  on  the  £1  at  $4.44.  If  bills  on  England  were 
bought  or  sold  by  the  rate  of  $4.84  as  the  par  value,  the  exchange  in  the  above 
transaction  would  be  at  a  discount,  instead  of  a  premium. 

When  we  buy  a  bill  of  exchange,  it  is  for  the  purpose  of  placing 
funds  at  some  distant  point,  without  the  necessity  of  remitting  specie  or 
merchandise.  It  is  the  method  of  remitting  generally  preferred,  provi- 
ded the  rate  of  exchange  be  not  too  high. 

Day-Book — Transaction  of  March  27. 

Elucidation. — Wm.  Evans  owes  us  for  the  amount  of  the  order, 
which  being  at  sight,  and  accepted,  brings  him  immediately  into  our 
debt.  It  is  agreed  that  it  shall  be  passed  to  his  account,  instead  of  being 
paid  in  cash,  because  by  former  transactions  we  are  owing  him. 

Day-Book — Transaction  op  March  30. 

Elucidation. — Before  making  the  closing  entry  under  this  date,  all 
the  entries  in  the  Journal,  relating  to  the  Company  1  Merchandise,  must 
be  posted,  and  the  sums  on  the  credit  side  of  the  account  examined  in 
the  Day-Book,  in  order  to  see  if  they  are  actual  sales,  or  only  transfers. 
This  done,  we  make  the  following  calculation,  which  is  the  origin  of  the 
Day-Book  entry  of  March  30th  : — 

Total  sales  (amount  of  the  credit  side  of  the  account) $7,850  00 

Stoiage  charged  by  us,  and  any  other  charges  against 

the  goods  if  we  had  them $  39  00 

Our  commission  for  selling,  at  2^  per  cent 196  25 

Amount  of  the  expenses  on  the  flour 235  25 

which  we  subtract  from  the  total  sales,  and  which  gives  us 

the  amount  of  the  net  proceeds 7,614  75 

Half  of  which  belongs  to  Mr.  Harris 3,807  37 

And  our  half  is 3,807  38 

From  this  we  take  the  cost  of  our  half  (found  on  the  debtor 

side  of  the  account),  which  is 3,187  50 

Showing  our  net  gain  in  this  business  to  be 619   88 

Having  explained,  as  above,  the  origin  of  the  Day-Book  entry,  we 
proceed  now  to  show  how  it  is  to  be  disposed  of  in  the  Journal : — 

To  Commission  we  owe  for  producing  us $196  25 

To  Store-Expenses  we  owe  for  producing  us 39  00 

To  P.  Harris  we  owe  for  his  half  of  the  net  proceeds  of  the 

flour  in  our  hands 3,807  37 

To  Profit  and  Loss  (name  of  our  business)  we  owe  for  our 

half  of  the  net  gain , 619  88 

Total  that  we  owe 4,662  50 

6  ■ 


V    i 


m 


42 


TRIAL  BALANCE. 


This  should  be  the  balance  of  the  account  of  Company  1  Merchandise, 
because  we  can  owe  no  more  or  less,  after  making  the  above  calcula- 
tion, than  we  did  before  ;  but  we  may  owe  different  objects. 

Company  1  Merchandise  is  debtor,  because  it  owes  us  for  the  amount 
we  transfer  from  its  credit  to  the  credit  of  other  accounts,  where  it 
more  properly  belongs.  We  ought  to  make  this  transfer  of  the  balance, 
because  the  goods  have  all  been  sold,  and  the  preceding  calculation 
shows  us  that  we  owe  that  balance  to  others. 

The  "  Account-Sales"  of  this  flour,  made  out  to  be  rendered  to  Mr. 
Harris,  will  be  found  among  the  Forms  at  the  end  of  the  book. 


ill 


* 


i: 


TRIAL  BALANCE. 

The  student  will  now,  having  posted  all  the  entries  in  the  Joarna?, 
proceed  to  make  out  the  Trial  Balance  of  March  30,  in  the  manner  ex- 
plained at  the  end  of  January  and  February. 

The  following  is  the  Trial  Balance,  showing  the  balances  of  the  ac- 
counts at  this  date  : — 


Dr. 


Balances  of  March  30,  1850. 


Cr. 


2 

4 

5 

6 

/ 

8 

9 

10 

12 

13 

14 

16 


Cash..- 

Merchandise 

Bills  Receivable... 

Store-Fixtures . 

Schooner  Josephine 

Store-Expenses 

Exchange 

C.Lawrence 

S.  H.  Lovell 

W.  Howard 

Lockhart  &  Arrott. 

Shipment  to  Port  \ 
au  Prince 


$28,787 

4,596 

11,392 

300 

4,951 

18 

177 

165 

395 

307 

2,020 

4,109 


57,221 


33 

39 
79 
00 
00 
76 
78 
00 
00 
62 
00 

56 


23 


1 
1 
6 

7 

8 

9 

11 

14 

16 


T.  Blanchard 

C.  C.  Marsh 

Bills  Payable.... 

Discount  and  Int'st 

Profit  and  Loss  . . 

Commission 

P.  Harris 

J.  De  Nones 

Shipment  to  New 
Orleans 


$26,920 

,  16,405 

4,293 

112 

269 

496 

4,994 

3,531 

197 


00 
00 
78 
50 
88 
10 
87 
32 

78 


57,221 


23 


JOURNALIZING. 


BUSINESS  OF  APRIL: 

Embracing  Entries  of  forty  Transactions,  relating  to — Paying  Rent — Receiving  Retams 

Receiving  Consignments  free  of  Charges — Selling  on  Commission — Renevping  Notes Al- 
lowing to  ourselves  for  Damages — Shipping  on  our  Account — Closing  Consignment — Baying 
in  Joint- Account — Exchanging  Uncurrent  Money — Renewing  our  Notes — Transfening  Par- 
chase  at  Auction — Drawing  Prize — Receiving  Account-Sales  with  Returns — Taking  a 
Consignment  to  our  Account — Receiving  Freights  of  our  Vessel — Drafts  remitted  us  for  Col- 
lection— Buying  Drafts  per  Order  and  for  Remittance — Investing  Funds  in  Drafts — Buying 
Specie— Allowing  Interest  on  Partner's  Capital— Rendering  Accounts- Current-Closing  Ac- 
counts— Correcting  Errors,  &c.,  &c. 

THE  RULE. 

Question  yourself,  in  every  transaction,  thus : — 

What  owes  us  ?     For  that  alone  is Dr. 

What  do  we  owe  ?     For  that  alone  is Cr. 

Day-Book — Transaction  op  April  2. 

Elucidation. — The  cotton  that  we  receive,  in  this  transaction,  owes 
us  as  much  for  the  freight  as  for  its  first  cost  in  New  Orleans.  It  is  there- 
fore deotor  for  $2,32v/. 

To  Lockhart  &  Arrott  we  are  indebted  for  the  amount  of  the  cotton 
shipped  to  us  by  our  request.  This  invoice  is  returns  for  a  shipment 
made  to  Lockhart  &  Arrott,  February  4th ;  but  we  do  not  owe  and  credit 
the  shipment  in  this  transaction,  because  it  was  credited  when  we  re- 
ceived the  account-sales,  March  16. 

Day-Book — Transaction  of  April  3. 

Elucidation. — In  this  transaction,  there  is  neither  debtor  nor  cred- 
itor ;  that  is,  nothing  owes  us,  and  we  owe  nothing.  We  can  not,  there- 
fore, make  any  Journal  entry.  The  coffee  still  belongs  to  Mr.  Fisher. 
We  have  not  bought  it  of  him,  nor  agreed  to  pay  him  a  certain  sum ; 
therefore  we  can  not  owe  him  for  the  coffee,  nor  credit  him  for  it.  The 
coffee  has  not  cost  us  anything,  nor  is  it  responsible  to  us  for  any  ex- 
penses ;  therefore  it  is  not  debtor. 

There  is  no  necessity  for  this  transaction  appearing  in  the  Day-Book ; 
but  the  invoice  should  be  copied  into  the  Invoice-Book,  and  Mr.  Fisher 
is  entitled  to  a  receipt  for  the  quantity  of  coffee  received  of  him  on 
commission. 

Day-Book — Transaction  op  April  7. 

Elucidation. — We  say  nothing  of  Bills  Receivable  in  the  transaction 
of  this  date,  because  the  circumstances  of  the  note  have  not  changed.  It 
still  owes  us  ihe  S2,000,  for  which  we  made  it  debtor  when  it  began  to 
owe  us — January  5th. 


;>i    i 


V    -i 


I  Itll' 


Hi 


ti 


I! 


44  JOURNALIZING.  * 

The  new  note  should  be  entered  in  the  Bill-Book,  and  against  the  old 
one  should  be  remarked,  that  it  was  renewed.  (See  Notes  Nos.  1  and 
15,  in  the  Bill-Book.)  It  is  customary,  in  renewing  notes,  to  draw  the 
new  note  for  the  same  amount  as  the  old  one,  and  to  pay  the  interest  on 
the  new  note  in  advance,  for  the  time  it  may  have  to  run. 

Day-Book — 2d  Transaction  op  April  7. 

Elucidation, — Mr.  Fisher  owes  us  for  the  sum  we  have  paid  him  on 
account  of  the  proceeds  of  his  coffee.  We  shall  owe  him  the  net  pro- 
ceeds when  we  render  the  account-sales. 

To  Fisher's  consignment  we  are  indebted  for  producing  us  the  $1,440 
paid  to  Mr.  Fisher. 

If  we  had  made  two  entries  of  this  transaction  in  the  Day-Book,  Cash 
would  appear  as  both  a  debtor  and  a  creditor. 

Day-Book — Transaction  of  April  10. 

Elucidation. — Mr.  De  Nones  owes  us  for  the  amount  of  the  defects 
found,  and  allowed,  in  goods  sold  for  him.  We  say  nothing  of  the  con- 
signment in  the  Journal  entry,  because  that  has  been  closed,  and  the  net 
proceeds  transferred  to  his  account. 

Merchandise  is  creditor,  because  by  that  name  we  called  the  olives 
when  they  became  ours,  and  now  they  have  produced  us  the  amount 
we  claim  as  deduction  in  the  price  we  took  them  at. 

Day-Book — Transaction  op  April  11. 

Elucidation. — Mr.  Fisher  owes  us  for  the  amount  we  have  paid  him 
— that  is,  $1,3/50  :  $1,322.33,  four  months  before  due,  is  equal  to  $1,350, 
allowing  us  interest  for  four  months  and  three  days. 

Bills  Receivable,  or  the  note  of  S.  H.  Lovell,  owes  us  now  for  the 
sum  that  he  owed  us  before,  because  in  that  kind  of  property  he  has 
paid  us. 

Discount  is  in  our  favor :  it  produces  us  $27.67.  We  discounted  the 
note  for  Mr.  Fisher. 

Day-Book — Transaction  op  April  16. 

Elucidation. — Before  we  can  make  the  Day-Book  entry  of  this  date, 
all  the  sums  for  which  the  "  consignment"  is  debtor  or  creditor  in  the 
Journal,  must  be  posted  to  the  account  in  the  Leger. 

On  the  credit  side  we  see  the  amount  of  the  sales — $4,680 ;  from 
which  subtracting  all  the  expenses,  leaves  the  net  proceeds  $4,545.  By 
this  calculation,  we  discover  that  the  balance  of  the  account  (which  is 
the  total  of  the  credit  side  in  this  case)  is  $4,680,  and  that  we  owe  this 
sum  to  the  following,  to  which  we  must  now  transfer  it : — 

We  owe  to  Commission  for  what  it  produces  us $117  00 

We  owe  to  Store-Expenses  for  what  they  produce  us 18  00 

We  owe  to  J.  Fisher  for  the  net  proceeds  of  his  coffee 4,545  00 

Making  the  total  of  the  Cr.  side,  or  the  balance  of  the  acct..  4,680  00 


JOURNALIZING. 


45 


These  now  become  our  creditors  instead  of  the  consignment,  and  this 
must  be  charged  for  the  amount  that  we  transfer,  which  will  close  the 
account  of  the  consignment. 

Day-Book — Transaction  op  April  20. 

Elucidation. — The  merchandise  bought  in  joint-account  with  Mr. 
Austin,  in  this  transaction,  owes  us  for  the  amount  it  has  cost  us — that  is, 
for  what  our  two  thirds  cost,  $3,333.33 — and  for  no  more.  The  mer- 
chandise can  not  owe  us  for  what  it  has  cost  Mr.  Austin. 

We  say  nothing  of  Mr.  Austin  in  the  Journal  entry,  because  we  have 
paid  nothing  for  him,  nor  he  for  us. 

NoTE.--Never  permit  the  mere  circumstance  of  receiving  or  delivering' 
merchandise  to  divert  your  attention  from  the  true  and  only  practical  Rule. 
By  this  rule  alone  can  you  prove  the  correctness  of  a  Journal  entry.  There 
are  various  other  transactions,  besides  this,  in  which  the  object  that  is  received 
is  not  our  debtor,  and  that  which  is  delivered  is  not  our  creditor.  See  the 
transactions  of  the  4th,  12th,  25th,  26th,  and  27th  of  February,  2d,  3d,  16th, 
20th,  21st,  and  27th  of  March,  and  3d  of  April.  In  all  these  cases,  if  the  old 
rule  ("  The  thing  received  is  Dr.  to  the  thing  delivered")  should  be  applied,  the 
Journal  entry  would  be  grossly  wrong.  Also,  the  old  rule  never  can  be  ap- 
plied to  interest,  without  making  a  wrong  entry. 

Day-Book — Transaction  of  April  24. 

Elucidation. — To  renew  a  note,  is  to  pay  it  by  giving  a  new  note  for 
the  old  one ;  and  as  the  new  is  generally  drawn  for  the  same  amount  as 
the  old,  it  is  customary  to  pay  the  interest  that  may  arise  on  the  new 
note,  in  advance. 

Day-Book — Transaction  op  April  28. 

Elucidation.— As  we  receive  the  account-sales  of  our  shipment  to 
Messrs.  Walker  &  Co,  at  the  same  time  we  receive  the  returns,  we  owe  the 
"  Shipment  to  Port  au  Prince"  for  the  net  proceeds,  and  not  Walker, 
because  the  shipment  now  produces  us  $6,000. 

If  these  returns  had  not  been  accompanied  by  the  account-sales,  then 
we  should  owe  and  credit  Messrs.  Walker  &  Co.  for  the  invoice  of  hides. 

The  freight  composes  a  f)art  of  the  cost  of  the  hides ;  therefore  they 
are  debtor  for  the  $200  as  well  as  the  $6,000. 

We  owe  our  schooner  for  the  value  she  produces  us  in  freight. 

Day-Book — 2d  Transaction  op  April  28. 

Elucidation.— The  expenses  on  the  mahogany  were  incurred  while 
It  belonged  to  Messrs.  Walker  &  Co.;  therefore  we  deduct  them  from 
the  amount  at  which  we  buy  the  mahogany  ($3,000),  leaving  the  net 
proceeds  of  $2,650,  which  we  owe  to  the  consignors. 

The  mahogany  owes  us  for  its  cost,  which  is  $3,000. 

Day-Book — 3d  Transaction  of  April  30. 
Elucidation.— The  bill  of  exchange  that  we  have  bought,  in  this 


I 


>■  I 


iii 


I  I 


16  JOURNALIZING. 

transaction,  does  not  owe  us,  because  we  have  bought  it  by  request  of, 
and  remitted  to,  Messrs.  Walker  &  Co. :  they  owe  us. 

We  owed  Messrs.  Walker  &  Co.  $2,650,  which  we  will  suppose  was 
due  them  here  (in  New  York  city) ;  and  we  have,  by  their  order,  invested 
that  sum  (less  our  commission)  in  a  draft  drawn  for  as  much  as  the  funds 
would  buy.  r 

Day-Book — 4th  Transaction  of  April  30. 

Elucidation. — In  this  transaction,  we  buy  a  bill  of  exchange,  and 
remit  it  to  Mr.  De  Nones,  in  payment  of  what  we  owed  him — $3,469.32. 
Let  us  suppose  that  this  debt  was  payable  to  him  in  Cadiz  :  we  then 
have  only  to  buy  a  draft  for  which  he  will  receive  that  sum.  If  we  give 
for  the  draft  less  than  that  sum,  the  gain  by  exchange  or  discount  is  ours, 
not  his ;  if,  on  the  contrary,  the  exchange  on  Cadiz  is  at  a  premium,  the 
loss  would  be  ours,  not  his.  (It  is  necessary  to  know  where  the  money 
is  due  or  payable,  in  order  to  know  who  gains  or  loses  by  the  exchange.) 
The  draft  we  have  bought  has  cost  only  $3,402.98 ;  but  Mr.  De  Nones 
will  receive  for  it  $3,454.80,  which  sum,  with  the  interest  for  25  days 
that  it  wants  of  being  due,  will  make  the  sum  that  we  owed  him — 
$3,469.32.  < 

In  Journalizing  this  transaction — 

We  owe  to  Exchange,  because  it  is  in  our  favor,  and  produ- 
ces us  the  discount  on  the  draft $51  82 

We  owe  to  Interest,  because  it  brings  us 14  52 

We  owe  to  Cash  for  paying  for  the  draft 3,402  98 

Making  the  sum  which  Mr.  De  Nones  owes  us,  and  is 

debtor  for,  in  this  transaction 3,469  32 

Note. — Had  this  debt  been  due  to  Mr.  De  Nones  in  this  city,  instead  of  Ca- 
diz, we  could  charge  him  only  for  the  cost  of  the  draft,  and  not  for  what  it  was 
drawn  ;  and  then  we  should  have  nothing  to  say  in  the  Journal,  of  exchange, 
because  it  would  neither  produce  us  nor  cost  us  anything. 

Day-Book — 5tii  Transaction  of  April  30. 

Elucidation. — In  this  transaction  we  buy,  with  funds  in  our  hands 
belonging  to  Mr.  Ruiz,  a  bill  of  exchange  on  Havana ;  and  we  pay  for 
it  according  to  the  rate  of  exchange,  which  we  may  suppose  to  be  1 J 
per  cent,  discount.  In  this  way,  we  receive  a  draft  for  $5,050.63,  for 
which  we  give  only  $4,974.88,  which,  with  our  commission,  makes  up 
the  amount  of  funds  we  held  for  Mr.  Ruiz — $4,987.50. 

Mr.  Ruiz  owes  us,  in  this  case,  for  the  amount  we  paid  for  the  draft, 
and  for  our  commission,  but  for  no  more. 

Exchange  costs  us  nothing,  nor  do  we  gain  by  it ;  it  being  in  favor  of 
Mr.  Ruiz,  who  will  receive  a  draft  for  a  larger  sum  than  he  would  have 
received,  had  the  exchange  been  at  par. 

Day-Book — 6th  Transaction  of  April  30. 

Elucidation. — In  this  transaction,  we  only  exchange  one  kind  of 
money  for  another ;  and  as  we  pay  a  premium  on  that  we  receive,  we 


TRIAL  BALANCE. 


47 


say  Exchange  owes  us  for  what  it  has  cost,  and  we  owe  to  Cash  for  pay- 
ing it  for  us. 

Day-Book — 7th  Transaction  of  April  30. 

Elucidation. — This  entry  is  made  for  the  purpose  of  crediting  each 
partner  for  interest  on  his  capital — under  the  supposition  that  it  was  so 
stipulated  in  the  articles  of  agreement  between  them.  To  arrive  at  the 
interest  that  may  be  due  a  partner  on  his  capital,  we  make  out  his  "  ac- 
count-current," as  we  would  make  one  for  Mr.  Harris,  calculating  inter- 
est on  both  sides  of  the  account,  from  the  date  that  each  sum  may  be 
due.  See  the  "Account-Current"  made  out  for  Mr.  Marsh,  among 
the  Forms  at  the  end  of  the  book.  The  balances  of  interest  in  this  en- 
try are  obtained  from  the  accounts-current. 

In  Journalizing  this  entry  we  say  that  we  (the  firm)  owe  to  the  indi- 
viduals of  the  firm,  and  that  interest  owes  us. 

Day-Book — 8th  and  9th  Transactions  of  April  30. 

Elucidation. — The  sums  of  these  entries  are  obtained  from  the  accounts- 
current,  made  out  for  Mr.  Harris,  and  Mr.  Lawrence,  which  will  be  found 
among  the  Forms  at  the  end  of  the  book.  The  entry  relating  to  Mr.  Harris  is 
journalized  wrong  ;  but  the  error  is  corrected  by  the  "last  entry  in  the  day-book, 
under  date  of  May  30.  This  furnishes  an  example  for  the  correction  of  errors 
by  day-book  entries,  which  should  be  resorted  to  only  when  the  account  con- 
taining the  error  has  been  closed  ;  in  other  cases  it  is  better  to  change  the  fig- 
ures to  ciphers,  let  the  words  remain,  and  make  a  new  entry. 


Dr. 


TRIAL  BALANCE. 

Balances  of  April  30,  1850. 


Cr. 


3 
4 
5 
6 

7 
7 
8 
10 
12 
13 
16 

18 

.Cash 

826,274 
11,437 

6,998 
300 
613 

4,126 
662 
167 
395 
307 

3,500 

3,333 

07 
14 
35 
00 
27 
00 
76 
07 
00 
62 
00 

33 
61 

1 
1 
6 
8 
9 
9 
10 

16 
16 

T.  Blanchard 

C.C.  Marsh 

Bills  Payable 

Profit  and  Loss  . . . 

Commission 

Exchange  

P.Harris 

Shipment  to  New  > 
Orleans ^ 

Shipment  to  Port  \ 
au  Prince \ 

$26,870 

16,702 

4,137 

2,379 

794 

152 

4,988 

197 
1,890 

96 
69 
11 
88 
85 
70 
20 

78 
44 

61 

Merchandise 

Bills  Receivable 

Store-Fixtures 

Discount  and  Int'st. 
Schooner  Josephine 
Store-Expenses  . . . 

C.Lawrence 

S.H.  Lovell 

W.  Howard 

Shipment  to  Boston 

Company  2  Mer-  / 
chandise \ 

58,114 

58,114 

(■   » 


■r 


48 


BALANCE  SHEET. 


!  ! 


BALANCE  SHEET. 

It  is  customary,  in  well-regulated  mercantile  houses,  to  close  all  the 
accounts,  or  balance  the  books,  once  a  year.  The  object  of  so  doing  is 
to  obtain  a  correct  view  of  the  true  state  and  result  of  the  business  of 
which  the  books  give  the  records.  Accounts,  however,  are  closed  or 
balanced  under  other  circumstances — upon  a  cessation  of  business,  dis- 
solution of  partnership,  and  when  the  books  are  full  and  there  is  occa- 
sion for  new  ones.  ^       ... 

The  first  object  to  which  we  direct  our  attention,  m  closmg  the  books, 
is  the  Balance' Sheet.  This  sheet  exhibits,  under  two  heads,  the  entire  re- 
sult of  our  mercantile  operations.  Under  the  heading  of  «*  Balances  of 
our  Property  and  Debts''  (or,  Assets  and  Liabilities),  are  brought  to- 
gether all  that  owes  us,  and  that  we  possess,  and  all  that  we  owe  or  are 
liable  for;  under  the  heading  of  ''Balances  of  our  Frojits  and  Losses'' 
are  shown  all  the  balances  of  gain  or  loss  that  may  be  found  in  the 
Leger ;  and  consequently  the  balance  of  one  will  be  the  net  capital,  of 

the  other  the  net  gain.  , 

The  Balance  Sheet  is  chiefly  composed  from  the  Leger  and  an  m- 

ventory  of  the  merchandise  on  hand  belonging  to  us,  which  should  be 

taken  at  the  cost  price,  or  less,  if  the  goods  are  depreciated  in  value, 

but  never  at  more  than  cost.  ,      ,.  .    m 

Take  a  sheet  of  paper,  and  make  on  it  the  foUowmg  headmgs,  similar 

to  the  succeeding  Balance  Sheet : — 

*'  Balances  of  our  Property  and  Debts,"  and 
"  Balances  of  our  Profits  and  Losses." 

{Explanation  of  the  Balance  Sheet  continued  on  page  52.) 


BALANCE  SHEET 


OF 


APRIL    30,   1850, 


Blanchard  &  Marsh 


r 


Dr. 


Balances  of  ouh 


Property  and  Debts. 


Cr. 


ti 


t 


f'Wi 


1/ 


3 
4 
5 
6 
7 

10 
10 
13 
16 
18 


6 
7 
8 


Cash,  balance  on  hand 

Merchandise,  balance  on  hand  per  Inventory 

Bills  Receivable,  balance  on  hand 

Store-Fixtures,  valued  at 

Schooner  Josephine,        first  cost 

Charles  Lawrence,  balance  in  our  favor 

S.  H.  LoveU,  balance  in  our  favor 

Walter  Howard,  balance  in  our  favor 

Shipment  to  Boston,        no  account-sales 

Comp'y  2  Merchandise,  cost  of  our  two  thirds  on  hand 


$26,274 

07 

15,000 

00 

6,998 

35 

270 

00 

5,000 

00 

167 

07 

395 

00 

307 

62 

3,500 

00 

3,333 

33 

61,245 


44 


Dr. 


Balances  of  our 


Store-Fixtures,  loss  10  ojo  on  the  cost 

Discount  and  Interest,     loss 

Store-Expenses,  loss 


Thomas  Blanchard's      half  net  gain $4,273  24 

C.  C.  Marsh's  half  net  gain 4,273  24 

Net  gain 


/SO 


r^ 

6 
10 

Bills  Payable,                   balance  outstanding 

Paul  Harris,                     balance  in  his  favor 

$  4,137 
4,988 

52,120 

11 

20 

Thomas  Blanchard's  share  of  capital .  .$31,144  20 
C.  C.  Marsh's                  share  of  capital  .  -   20,975  93 

Net  capital 

13 

.^' 

61,245 

44 

Profits  and  Losses. 


4 
7 
8 
9 
9 
16 
16 


New  York,  April  30,  1850. 


51 


Cr. 


Merchandise,  gain  on  sales , 

Schooner  Josephine,  gain 

Profit  and  Loss,  gain 

Commission,  gain 

Exchange,  gain 

Shipm't  to  N.  Orleans,  gain 

Shipm't  to  P.  Prince,  gain 


$  3,562 

86- 

874 

00 

2,379 

88 

794 

85 

152 

70 

197 

78 

1,890 

44 

9,852 

51 

AhS 


5S 


BALANCE  SHEET. 


BALANCE  SHEET. 


53 


11 


ii' 


EXPLANATION  OF  THE  ENTRIES  ON  THE  BALANCE  SHEET. 

This  being  clone,  turn  to  the  first  account  in  the  Leger,  and,  by  rft' 
fleeting  on  its  nature,  endeavor  to  determine  on  what  part  of  the  sheet 
its  balance  should  be  placed. 

The  first  two  accounts  that  we  find  are  those  of  the  partners,  from 
which  we  take  nothing  at  present,  because  their  balances  are  what  re- 
mains of  the  old  or  original  capital. 

The  Cash  account  (folio  3)  shows  on  its  debtor  side  all  the  money  we 
have  received,  and  on  its  credit,  all  we  have  paid.  It  is  therefore  clear, 
that  the  balance  or  difference  between  the  debit  and  credit,  is  the  money 
on  hand.  Cash  is  a  property  that  owes  us  $26,274.07,  which  sum  we 
will  enter  on  the  debtor  side  of  the  Balance  Sheet,  under  the  head  of 
"  Property  and  Debts." 

The  account  of  Merchandise  (folio  4)  shows  on  its  debtor  side  the 
cost  of  all  the  goods  we  have  bought,  and  on  its  credit,  the  product  of 
all  the  sales. 

The  cost  of  our  merchandise  on  hand,  according  to  the  inventory 
(which  we  now  suppose),  is  $15,000.  This  property,  merchandise,  owes 
us  that  sum,  and  we  enter  it  on  the  debtor  side,  under  the  head  of 
**  Property  and  Debts." 

We  mxisl  now  calculate  die  gain  cr  loss  on  ihe  sales,  whicji  is  done 
by  adding  the  amount  of  the  merchandise  on  hand  to  the  amount  of  the 
sales,  thus  :— 

Amount  of  sales,  total  of  the  creditor  side $24,619  47 

Amount  of  merchandise  on  hand,  per  inventory 15,000  00 

39,619  47 
Cost  of  all  the  merchandise,  total  of  the  debtor  side 36,056  61 

By  subtracting,  we  find  the  gain  on  the  sales 3,562  86 

This  gain*re  enter  on  the  creditor  side  of  the  part  of  the  sheet  headed 
"  Profits  and  Losses." 

Note. — There  is  another  way  of  findinsr  the  g^in  on  the  sales,  when  the  ac- 
count is  in  a  similar  s  ate,  which  is,  by  subtracting  the  balance  of  the  account 
from  the  amount  of  the  inventory,  thus : — 

Inventory $15,000  00 

Balance  of  the  account 11,437  14 

Gain  on  the  sal§s 3,562  86 

If  there  had  been  no  merchandise  on  hand,  the  balance  of  the  account  would 
then  be  either  gain  or  loss. 

The  account  of  Bills  Receivable  (f  )lio  5)  shows  that  we  have  in  our 
possession  notes  to  the  amount  of  $0,998.35.  This  proj^erty  owes  us, 
then,  this  sum;  and  lherof)ro  we  enter  it  on  the  debtor  side,  under  tho 
head  of  "  Property  and  Debts." 

The  account  of  Bills  Payable  (f  )lio  6)  shows  that  there  arc  not^s  ar^ 
acceptances  out  against  us,  to  the  amount  of  $4,137.11;  and  as  that  is  a 


sum  we  owe,  we  enter  it  on  the  creditor  side,  under  the  head  of  Prop- 
erty and  Df^bts.  This  balance,  as  well  as  the  preceding,  ought  to  cor- 
respond with  the  notes  out,  and  on  hand,  in  the  Bill-Book. 

Tlie  account  of  Store-Fixtures  (folio  0)  shows  that  this  property  has 
cost  us  $300  ;  from  which  sum  we  deduct  10  per  cent,  for  the  wear,  and 
place  the  balance  ($270)  on  the  debtor  side,  under  the  head  of  "  Prop- 
erty and  Debts :"  and  the  $30  loss  we  enter  under  the  head  of  "  Profits 
and  Losses,"  on  the  debtor  side. 

The  account  of  Discount  and  Interest  (folio  7)  shows  a  gain  or  a  loss. 
If  the  creditor  side  exceeds  the  debtor,  it  is  evident  that  this  branch  of 
our  business  has  ])roduced  us  more  than  it  has  cost,  and  that  the  balance 
is  gain.  This  balance  is  a  debt  owed  to  us;  but  as  we  never  can  real- 
ize it,  it  is  evidently  a  loss,  and  consequently  we  enter  said  balance  un- 
der the  head  of  "  Profits  and  Losses,"  on  the  debtor  side. 

Tlie  account  of  Schooner  Josephine  (folio  7)  shows  both  ])roperty  and 
profit  or  loss.  Her  first  cost  is  $5,000,  which  we  will  take  as  the  amount 
of  property,  and  enjer  it  on  the  debtor  side,  under  the  head  of  "  Prop- 
ertv  and  Debts."  The  creditor  side  of  this  account  shows  what  the 
schooner  has  produced  »is  for  freight — $1,055 ;  from  which  we  deduct 
the  expenses  on  the  debit  ($181),  and  the  result  is  the  gain,  which  we 
ent(M-  on  the  credit,  under  the  head  of  "  Profits  and  Losses." 

The  account  of  Profit  and  Loss  (folio  8)  represents  our  business :  if 
the  debtor  side  exceeds  the  crc^lit,  the  balance  will  be  loss ;  or,  if  the 
credit  exceeds  the  debit,  the  balance  will  be  gain.  The  balance,  in  this 
case  is  gain,  which  we  enter  under  the  head  of  "  Profits  and  Losses," 
on  the  credit  side. 

Store-Expenses  (folio  8).  This  account  does  not  show  property,  but 
a  branch  of  our  business;  and  the  balance  which  appears  at  it  is  either 
gain  or  loss.  Store-Expenses  owes  us,  but  they  will  never  pay  wha*- 
thev  owe  ;  therefore  the  balance  of  this  account  should  be  entered  under 
the  head  of  "  Profits  and  Losses." 

The  account  of  Exchatige  (folio  9)  shows  a  sum  of  gain,  because  its 
crt!dit  side  exceeds  the  debit — that  is,  this  branch  of  our  business  has 
])roducod  us  more  than  it  has  cost ;  therefore  we  enter  the  balance  on 
the  credit  side,  under  the  head  of  "  Profits  and  Losses." 

The  account  of  Commission  (folio  9)  represents  a  branch  of  our  busi- 
ness ;   consequently  we  enter  its  balance  under  the  head  of  "  Profits  and 

Losses," 

Tho  account  of  Charles,  Lawrence  (folio  10)  shows  a  balance  against 
him,  atul  in  our  favor,  of  $167.07  ;  and  as  we  consider  him  solvent,  we 
place  it  on  the  debtor  side  of  the  sheet,  under  the  head  of  "  Property 
and  Debts." 

The  account  of  Paul  Harris  (fi)lio  10)  shows  a  balance  in  his  favor, 
which,  being  a  sum  that  we  owe,  we  enter  on  the  credit  side,  under  the 
head  of  *'  Property  and  Debts." 

The  account  of  O.  Otis  &  Co.  (folio  10)  shows  no  balance,  it  having 
been  balanced  or  closed  in  the  course  of  the  business. 

The  account  of  S.  H.  Lovell  (folio  12)  shows  a  balance  in  our  favor, 
and  as  such  we  enter  it  under  the  head  of  "  Property  and  Debts,"  as 
the  debit. 


« 


H 


■:*'i 


f 
Alt 


f( 


54  BALANCE  SIJEET. 

The  account  of  Walter  Howard  (folio  13)  exhibits  a  balance  in  our 
favor  of  $307.62 ;  which  we  enter  on  the  debit  side,  under  the  head  of 
"  Property  and  Debts." 

The  account  of  Shipment  to  Boston  (f()lio  16),  not  having  any  sum  on 
its  credit,  shows  that  wo  have  not  received  an  account-sales ;  therefore 
the  amount  of  its  debtor  side  is  property  which  we  have  in  Boston.  Wo 
enter  this  amount  on  the  debit,  under  the  head  of  ♦♦  Property  and 
Debts."  *       ^ 

The  account  of  Company  2  Merchandise  (folio  18)  shows  a  balance 
due  us  of  $3,333.33  ;  which  is  the  cost  of  our  two  thirds  of  the  merchan- 
dise belonging  jointly  to  Mr.  Austin  and  ourselves.  We  therefore  enter 
our  part  on  the  debit,  under  the  head  of  "  Property  and  Debts." 

The  account  of  Shipment  to  New  Orleans  (folio  16)  does  not  now 
show  any  sum  of  property,  it  having  been  sold,  and  the  account-sales 
received.  On  the  credit  side  we  see  what  the  shipment  has  produced 
us,  and  on  the  debit,  what  it  has  cost.  The  balance,  in  this  case,  is  gain, 
which  we  enter  under  the  head  of  "  Profits  and  Losses." 

The  account  of  Shipment  to  Port  au  Prince  is  in  the  same  state  as 
the  preceding. 

Haying  now  been  through  the  Leger,  and  taken  from  every  account 
what  it  contained  of  property  and  debts,  and  of  profits  and  losses,  and 
disposed  of  the  sums  under  their  appropriate  heads  on  the  Balance 
Sheet,  we  add,  with  pencil,  its  cohimns,  and  ascertain  the  balances. 

The  Balance  Sheet  exhibits  two  important  results :  Under  the  head 
of  Property  and  Debts,  are  seen  all  we  possess,  and  all  that  we  owe ; 
the  difference,  or  balance,  must  be  our  present  net  capital — $52,120.13. 
All  the  sums  of  gain  and  those  of  loss,  throughout  the  Leger,  have  been 
brought  on  to  the  Balance  Sheet,  under  the  head  of  "  Profits  and  Loss- 
es;" and  the  balance  of  the  two  columns  of  this  part  of  the  sheet  must 
be  the  net  gain  of  our  business — $8,546.48.  This  can  not  be  closed,  or 
finished,  until  it  has  been  proved. 

PROVIIYG  THE  BALANCE  SHEET. 

If  the  Balance  Sheet  be  correct,  it  may  be  proved  by  adding  the  net 
gain  to  the  original,  capital,  which  should  make  the  net  present  capital; 
thus : — 

Thos.  Blanchard's  old  capital  (balance  of  his  account) $26,870  96 

C.  C.  Marsh's  old  capital  (balance  of  his  account) 16,702  69 

Net  old  capital  in  the  business 43,573  65 

Net  gain  by  the  Balance  Sheet 8,546  48 

Net  present  capital 52,120  13 

Which,  being  the  same  amount  produced  by  subtracting  all  we  owe  from 
all  we  have  (property  and  debts),  is  proof  that  the  Balance  Sheet  is  cor- 
rect. The  proof,  then,  consists  in  finding  the  present  capital  by  two 
different  methods :  one,  by  subtracting  our  liabilities  from  our  assets  • 
the  other,  by  adding  our  gain  to  our  former  capital.  These  operations 
should,  of  course,  result  in  the  same  sum. 


CLOSING  THE  BOOKS. 
CLOSING  THE  BALANCE  SHEET. 


55 


The  net  gain  is  divided  equally  between  the  partners,  and  the  last  two 
entries  are  made  on  the  debtor  side  of  that  part  of  the  sheet  headed 
«  Profits  and  Losses ;"  which  operation  will  close  or  balance  that  part 

of  the  sheet.  .     ,     ^       ,  ,        jj.      ,  • 

Each  partner's  share  of  the  net  capital  will  be  found  by  addmg  his 
half  of  the  net  gain  to  his  old  capital  (balance  of  his  account).  The  last 
two  entries  on  the  credit  of  that  part  headed  '*  Property  and  Debts," 
show    each  partner's  share  of  the  net  capital,  and  close  that  part  of  the 

sheet. 

Place  the  totals  at  the  foot  of  the  columns,  affix  the  date,  and  the 

Balance  Sheet  is  finished.  ,,  .  /. 

If  for  any  reason  it  is  not  desired  to  close  the  books,  all  information 
relative  to  the  state  of  our  business  may  be  derived  from  Jie  Balance 
Sheet. 

CLOSING  THE  BOOKS. 

To  close  an  account,  means  to  make  the  debtor  and  creditor  sides 

Six  entries  in  the  Day-Book,  composed  from  the  contents  of  the  Bal- 
ance Sheet,  journalized  and  posted,  will  always  close  a  set  of  books.   ^ 

There  are  two  motives  for  making  these  closing  entries  :  the  first  is, 
to  carry  the  net  gain  of  the  business  to  the  partners'  accounts  ;  the  other 
is,  that  each  account  in  the  Leger  may  begin  anew,  by  its  balance  being 
separated  from  the  other  sums,  and  brought  down  below  the  totals,  or 

lines. 

Day-Book,  April  30— Last  six  Entries. 

The  last  six  entries  in  the  Day-Book,  under  date  of  April  30,  are 
composed  from  the  Balance  Sheet.  «  ,  , 

The  object  of  the  Jirst  is,  to  transfer  the  losses  from  the  several  ac- 
counts where  they  now  are,  to  one  account,  viz.,  Profit  and  Loss ;  there- 
fore we  make  this  debtor  in  place  of  the  others,  and  the  others  become 
creditors ;  which  entry,  when  posted,  will  close  those  several. 

The  object  of  the  second  entry  is  to  transfer  the  gains,  in  like  manner, 
from  the  several  accounts  to  one  account— which  is  Profit  and  Loss 
therefore  this  becomes  our  creditor,    and  those  our  debtors. 

The  object  of  the  tJurd  entry  is  to  transfer  the  net  gam,  which  now 
stands  at  the  Profit  and  Loss  account,  to  the  accounts  of  the  partners : 
these,  therefore,  become  the  creditors,  and  that  the  debtor ;  which  entry, 
when  posted,  will  close  the  Profit  and  Loss  account. 

The  object  of  ihe  fourth  entry  is  to  transfer  all  the  balances  of  Prop- 
erty and  Debts,  in  our  favor,  to  a  new  account  opened  in  the  Leger, 
entitled  "  Balances  of  April  30, 1850."  Consequently,  this  new  account 
becomes  debtor  for  all  the  sums  that  the  former  owed  us,  and  they  be- 
come creditors;  which  entry,  when  posted,  will  balance  or  close  those 
accounts.     Post  the  creditors  in  red  ink. 

The  object  of  the  Jifth  entry  is  to  transfer  the  balances  of  all^^those 
that  we  owe,  to  the  account  ofr "  Balances  of  April  30,  1850  :"  this, 


I 


ri 


't 


56 


OPENING  NEW  BOOKS. 


■I' 


then,  becomes  the  creditor,  and  those  the  debtors ;  wliich  will,  wlie 
posted,  close  the  accounts  of  Bills  Payable  and  P.  Harris.     Post  these 
two  in  red  ink. 

The  sixth  entry  closes  or  balances  the  three  only  rcmainiiio-  unclosed 
accounts.  The  balance  of  the  account  entitled  "  Balances  of  April  30, 
1850,"  is  now  the  net  present  caphal — $52,120.13 ;  and  the  balances  of 
the  accounts  of  the  partners  are  llieir  respective  shares  of  said  capital. 
To  close  these  three  accounts,  the  partners  become  debtors,  and  the 
"Balances"  creditor.  Post  all  these  in  red  ink.  The  reason  of  j)ostino- 
the  balances  in  red  is,  that  such  sums  are  hereafter  to  be  brought  down 
in  new  accounts. 

All  the  accounts  in  tho  Legcr  ought  now  to  balance ;  therefore  rule 
and  foot  them,  and  the  books  are  closed. 


OPENING  NEW  BOOKS. 

If,  when  the  books  have  been  closed  according  to  the  directions  ^iven, 
there  should  be  no  necessity  for  opening  new  books,  and  the  busirfess  is 
to  be  continued  in  the  old  ones,  wo  optMi  the  accounts  by  mciely  bring- 
ing down  (under  the  old  heading,  and  below  the  lines)  the  balances  al- 
ready written  in  the  accounts  in  red  ink,  by  writing  "  To  Balance,''  or 
"i>*//  Balance''  as  the  case  may  be. 

But  if  the  books  are  full,  and  it  should  be  necessary  to  open  new 
ones,  the  best  method  is  to  make  an  entry  in  the  new  Day-Book,  com- 
posed from  the  Balance  Sheet,  showing  the  state  of  the  affairs  at  the 
closing  of  the  old  books,  in  the  following  manner : — 

New  York,  April  30,  1S50. 


Inventory  of  the  Property  and  Debts  of  the  firm  of 
Blanchard  &  Marsh,  as  per  Balance  Sheet  of  this 
date,  as  follows  : — 

Cash,  balance  on  hand $26,274  07 

Merchandise,  per  Inventory 15,000  00 

Notes  in  our  ftivor,  as  per  Bill-Book 6,998  35 

Store-Fixtures,  valuation 270  00 

Schooner  Josephine,  first  cost 5,000  00 

Charles  Lawrence,  balance  in  our  favor 167  07 

S.  H.  Lovell,  balance  in  our  fivor 395  00 

Walter  Howard,  balance  in  our  favor 307  62 

Shipment  to  Boston,  of  April  30,  1850 3,500  00 

Company  2  Merchandise,  our  |  on  hand. . .  3,333  33 

Our  notes  outstanding,  as  per  Bill-Book. . .     4,137  11 

Paul  Harris,  balance  in  his  favor 4,988  20 

Net  capital 

Of  which  Thomas  Blanchard*s  share  is $31,144  20 

Of  which  C.  C.  Marsh's  share  is 20,975  93 


»■■- 


JOURNALIZING.  57 

The  Journal  entry  of  the  preccdinor  Day-Book  entry  would  be  such 
as  to  show  several  debtors  and  several  creditors.  The  debtors  are  all 
those  properties  and  persons  whiclj  owe  us,  and  the  creditors  those  that 
we  owe.  For  the  balance  between  these,  which  is  the  net  capital,  the 
firm  owes  the  individual  partners,  and  they  should  be  credited,  thus  :— 

Sundries  Dr.  To  Sundries. 

Cash   $26,274  07 

Merchandise 15,000  00 

Bills  Receivable 6,998  35 

Store-Fixtures 270  00 

Schooner  .Josephine 5,000  00 

Charles  Lawrence 167  07 

S.  H.  Lovell : 395  00 

Walter  Howard 307  62 

Shipment  to  Boston 3,500  00 

Company  2  Merchandise 3,333  33'$61,245  44 

To  Bills  Payable 4,137   11 

"    Paul  Harris 4,988  20 

"    Thomas  Blanchard.... 31,144  20 

"    C.  C.  Marsh 20,975  93    61,245  44 

When  the  above  entry  is  posted,  the  new  books  will  be  opened. 


BUSINESS  OF  MAY: 


Embracjna:  Entries  of  nlwut  one  luindrcd  Transactions,  in  a  condenserl  Form,  relating  to — 
Clerks'  Salaries — Delivering  Note  for  Debt  (hie — Investing  Monej'  in  Stocks — lleceiving 
Account-Sales— Receiving  Account  Current  with  Balance  of  Interest — Receiving  Draft  for 
Ralance  of  Account — Delivering  Note  on  Open  Policy — Sliipments  in  Joint  Account — 
Monthly  Entry  of  Purchases — Monthly  Entry  of  Sales — Monthly  Entiy  of  Cash  received — 
Monthly  Entry  of  Cash  paid — Correcting  errors. 

Transaction  of  May  16. 

The  Erie  railroad  stock,  which  we  buy  in  this  transaction,  has  cost  us 
only  $4,000  ;  the  discount  on  the  draft  is  no  part  of  the  cost  of  the  stock. 
The  stock,  therefore,  owes  us  $4,000.  When  we  receive  any  dividends 
on  this  stock,  we  shall  credit  it  for  the  interest  it  produces  us. 

Exchange  costs  us,  in  this  transaction,  $20.10,  for  which  it  is  debtor. 

We  owe  Messrs.  Eaton  &  Co.  for  the  amount  we  draw  on  them,  or 
order  them  to  pay  for  us ;  they  are  therefore  creditors. 

Transaction  of  May  23. 

In  the  transaction  of  this  date,  we  ship  an  invoice  of  goods  in  joint- 
account  with  Mr.  Austin ;  we  then  ship  half  of  the  invoice  for  him,  and 
half  for  ourselves :  therefore,  he  must  owe  us  for  his  half  of  the  ship- 
ment, and  the  shipment  owes  us  for  what  it  has  cost  us  for  our  half.  We 
pwe  whatever  contributes  to  make  up  the  amount  of  the  shipment. 
8  . 


li 


^ii 


58 


MONTHLY  ENTRIES. 
Day-Book — The  four  Entries  of  May  31. 


The  entries  in  the  Day-Book  of  this  month  are  introduced  for  tlie 
purpose  of  showinj^  a  plan  of  makinir  monthly  or  weekly  entries,  which 
shall  include  all  the  simple  transactions  of  the  house — ^that  is,  the  sim- 
ple purchases  and  sales  of  merchandise,  simple  cash  receipts,  and  simple 
cash  payments :  such  entries  to  be  made  up,  at  the  end  of  each  month 
or  week,  from  the  following  books,  viz. :  Invoice-Book,  Sales-Book,  and 
Cash- Book. 

The  first  of  the  four  entries  in  the  Day-Book  under  this  date,  is  sup- 
posed to  have  been  taken  or  composed  from  the  Invpice-Book.  It  in- 
cludes all  the  purchases  of  merchandise,  during  the  month,  for  notes  or 
on  account.  The  purchases  for  cash  do  not  come  into  this  entry,  hut 
are  included  in  the  entry  taken  from  the  Cash-Book. 

The  second  of  the  four  entries  in  the  Day-Book  of  this  month,  is  sup- 
posed to  be  composed  from  the  Sales-Book.  It  embraces  all  the  sales 
of  merchandise,  except  the  cash  sales :  these  come  into  the  Day-Book 
from  the  C ash-Book,  with  all  other  cash  receipts. 

The  third  of  the  four  Day-Book  entries  of  this  date,  is  drawn  from 
the  debtor  side  of  the  Cash-Bookj.  It  includes,  in  a  condensed  form,  all 
the  sums  of  money  received  during  the  month.  The  sums  received  of 
persons,  and  for  which  they  should  be  credited,  are  shown  separately 
with  the  dates;  but  the  other  sums  are  brought  in  aggregate  amounts. 

The  last  of  the  four  Day-Book  entries  of  this  date  we  will  suppose  is 
composed  from  the  creditor  side  of  the  Cash-Book.  It  comprises  all  the 
sums  of  cash  paid  out  during  the  month  ;  those  paid  for  merchandise, 
expenses,  interest,  and  all  other  objects  (except  persons  who  owe  us),  in 
aggregate  amounts. 

This  monthly  entry  plan  of  writing  up  the  business  of  a  house,  is  much 
admired,  and  possesses  many  advantages  over  the  method  of  making 
separate  Day-Book  and  Journal  entries  of  all  transactions.  Among  its 
advantages  may  be  enumerated  the  following  : — 

1st.  It  exhibits  nearly  the  whole  of  the  business  of  the  month  in  only 
four  Day-Book  entries  ;  thereby  affording,  monthly,  a  very  clear  and 
satisfactory  view  of  the  business. 

2d.  The  posting  is  reduced,  not  a  hundred  per  cent.,  but  to  a  hun- 
dredth part  of  what  it  would  be  on  the  daily  or  separate  entry  plan. 

3d.  Omissions  or  errors,  in  transferring  sums  to  the  Day-Book  from 
the  Cash-Book,  Invoice-Book,  and  Sales-Book,  can  not  occur,  because 
the  addition  of  each  Day-Book  entry  must  agree  with  the  addition  of  the 
book  from  which  it  is  brought. 

4th.  The  accounts  of  Merchandise,  Cash,  Bills  Receivable,  Bills  Pay- 
able, Expenses  and  Interest,  which  generally  cover  many  folios  in  the 
Leo-er,  to  no  purpose,  become,  as  they  should,  the  shortest — not  having 
on  them  more  than  twelve  or  twenty-four  sums  in  a  year. 

It  must  be  understood  and  remembered,  that  the  monthly  entries  can 
embrace  no  transaction  which  does  not  appear  in  full  and  complete  in 
either  the  Cash-Book,  Invoice-Book,  or  Sales-Book;  icA.  that  any  trans- 


o 


MONTHLY  ENTRIES. 


99 


action  that  can  not  be  made  a  purchase  or  sale  of  merchandise,  or  a 
cash  receipt  or  payment,  must  have  a  separate  Day-Book  entry  at  the 
time  it  occurs,  and  may  be  journalized  and  posted  separately. 

The  monthly  entry  plan  is  not  as  simple  as  the  other.     To  adapt  it 
successfully,  one   must  be  well  acquainted  with  the  subject,  and  thor 
oughly  understand  how  to  conduct  a  set  of  books  on  the  daily  or  sepa- 
rate entry  method. 

Day-Book — May  30  (Last  Entry). 

This  entry  is  made  to  give  a  sample  of  a  day-book  entry  to  correct  er- 
rors which  may  sometimes  be  discovered  after  an  account  has  been  closed. 
As  Mr.  Harris  was  charged  for  an  amount  for  which  he  should  have 
been  credited,  it  is  now  necessary  to  credit  him  for  double  that  sum. 


J 


J 

i 


I  4.1% 


Gl) 


QUESTIONS  AND  ANSWERS. 


QUESTIONS  AND  ANSWERS, 


RELATING    TO 


OPENING,  CONDUCTING,  AND  CLOSING  BOOKS. 


* 
I 


>7  > 

:  t 


OPENING  BOOKS. 

.  Quest.  What  Is  mcnnt  by  openiiii?  books  or  accounts  ? 
Ans.    Commencing  the  records  ot'u  business  in  a  gystemalic  manner. 
i.  Q.  With  what   records  or  entries  does  a  business   generally  com- 
mence ? 
A,  With  the  circumstances  of  the  person  commencing  business  :  with 
a  statement  of  his  capital. 

3.  Q.  When  a  person  begins  business  without  capital,  what  will  be  the 

first  entry  in  his  books  1 
A.  The  first  transaction  that  occurs — a  purchase  or  aught  else. 

4.  Q.  If  a  person  begins  business  without  capital,  and  owes  to  John 

Sims  $1,000,  what  will  be  his  Journal  entry  1 
A.  Supposing  his  name  to  be  Thomas  Blanchard,  his  Journal  entry 
will  be — 
Thomas  Blanchard  Dr. 

To  John  Sims 31,000  00 

5.  Q.  If  the  first  transaction  in  your  books  should  bo  the  purchase  of 

50   bakjs   of  cotton,   of  John    Sims,   on   credit,   amounting  to 
$2,000,  what  would  be  your  Journal  entry  ] 

A.  Merchandise  Dr. 

To  John  Sims 32,000  00 

6.  Q.  Why  is  that  your  Journal  entry  ? 

A.  Because  it  shows  all  the  debtors  and  creditors  of  the  transaction. 

7.  Q   Why  do  you  make  Merchandise  debtor,  and  John  Sims  creditor, 

in  that  transaction  ? 
A,  The  Merchandise  is  debtor,  because  it  owes  me  for  what  it  has 
cost  me ;  and  Sims  is  creditor,  because  I  owe  him — ^not  having 
•  ^aid  him  for  the  cotton. 


QUESTIONS  AND  ANSWEKS.  61 

8.  Q.  What  would  be  your  Journal  entry,  if,  at  the  commencement  of 

your  business,  you  borrow  of  J.  Sims,  cash — S3, 000  ? 

A.       Cash  Dr. 

To  John  Sims $3,000  00 

9.  Q.  What  would  be  your  Journal  entry,  if  you  begin  business  with 

a  capital,  in  cash,  of  $10,000  ? 
A,  Supposing  my  name  to  be  Thos.  Blanchard,  my  entry  would  be-— 

Cash  Dr. 

To  Thomas  Blanchard $10  000  00 

10   Q.  How  do  you  explain  this  entry  1 

A.  Cash  is  the  species  of  property  which  owes  me  for  my  capital ; 
therefore  it  is  debtor.  Nothing  can  be  debtor  in  my  books, 
unless  it  owes  me.  I  am  creditor,  because  I  am  possessed  of 
$10,000  capital,  for  which  I  owe  no  one. 

11.  Q.  Why  do  you  not,  in  opening  your  books,  credit  an  account  called 

"  Stock,"  for  your  net  capital  ? 
A,  By  so  doing,  I  should  be  calling  myself  **  Stock"  (that  being  the 
name  given  to  the  proprietor  in  some  systems  of  book-keep- 
inij),  and  I  do  not  perceive  any  good  reason  for  substituting 
that  name  for  my  own. 

Note. — Where  there  are  many  partners  in  a  business,  as  in  a  bank- 
ing or  railroad  company,  there  is  kept  an  extra  Leger,  containing 
only  the  accounts  of  the  partners.  In  such  cases,  there  must  be  an 
account  in  the  principal  Leger  to  represent  all  those  in  the  extra 
Leger:  that  account  may  be  called  "Stock,"  "Stockholders,"  or 
"  Shareholders." 

12.  Q.  When  several  persons  commence  a  partnership  in  company,  and 

all  do  not  advance  their  portions  of  the  capital,  how  would  be 
your  Journal  entry  ? 
A.  I  should  credit  such  only  as  advanced  capital,  and  neither  debit 
nor  credit  the  others. 

13.  Q.  Will  you  imagine  forme  a  Day-Book  of  the  commencement  of  a 

single  business,   supposing  the  party  to  owe  and  be  owed, 
and  that  your  name  is  Thomas  Blanchard  ? 
A,  I,  Thomas  Blanchard,  commence  business  under  the  following 
circumstances : — 

I  have  in  cash,  deposited $1,000  00 

I  owe  to  John  Sims,  on  account 100  00 

My  net  capital $900  00 

Or  thus : — 

Property  and  Debts  of  Thomas  Blanchard,  per  Inventory  taken 
this  day : — 

Cash,  balance  in  bank $1,000  00 

Balance  due  John  Sims,  on  account 100  00 

Net  capital $900  00 

14.  Q    In  what  manner  will  you  Journalize  these  entries  1 


L.t.;.>:i 


62 


QUESTIONS  AND  ANSWERS. 


A.  I  should  Journalize  them  both  thus  : — 

Cash  Dr.  To  Sundries. 

To  John  Sims $100  00 

Thomas  Blanchard 900  00  $1,000  00 


<( 


I 


15.  Q. 
A. 


16.  Q. 
A. 


17.  Q. 

A. 


18.  Q. 
A. 


19. 

Q. 

A. 

20. 

q. 

A. 

21. 

Q. 

A. 

22 

A. 

CONDUCTING  OR  KEEPING  ACCOUNTS. 

Which  is  the  most  important  book  of  a  set  of  account  books  1 

The  Day-Book ;  because  it  gives  a  complete  history  of  our  busi- 
ness, which  we  do  not  expect  to  find  in  the  others.  In  some 
systems,  the  Day-Book  is  a  mere  blotter,  and  the  transactions 
entered  therein  are  repeated,  with  explanations,  in  the  Jour- 
nal ;  in  that  case,  the  Journal  is  the  most  important. 

How,  or  in  what  manner,  should  Day-Book  entries  be  written  t 

Day-Book  entries  should  be  written  in  clear  and  simple  sen- 
tences :  the  different  parts  of  a  transaction  should  be  stated  in 
the  order  in  which  they  occur.  I  do  not  think  the  words  debtor 
and  creditor  should  be  used  in  Day-Book  entries,  but  merely  a 
simple  record  of  the  transaction. 

From  what  sources  do  you  get  the  Day-Book  entries  ? 

Few  transactions  appear  first  in  the  Day-Book,  although  it  is 
often  called  the  book  of  original  entry.  Entries  in  the  Day- 
Book  are  drawn  from  various  sources — generally  from  the  In- 
voice-Book, Sales-Book,  Cash-Book,  and  Bill-Book. 

What  do  you  consider  to  be  the  object  of  the  Journal  ? 

To  exhibit  the  debtors  and  creditors,  which  arise  from  mercantile 
transactions,  separated  from  the  sentences  of  explanation  con- 
tained in  the  Day-Book,  that  they  may  be  more  easily  and 
correctly  transferred  to  the  Leger. 

By  what  principle  or  rule  do  you  distinguish  debtors  and  cred- 
itors, or  make  Journal  entries  ? 

The  rule  I  use  is  this  :  All  those  persons  and  things  which  I 
think  owe  me,  I  call  Debtors ;  and  all  those  which  I  owe,  I 
call  Creditors. 

In  a  transaction  where  there  are  many  sums,  how  do  you  know 
which  sum  to  affix  to  the  name  of  a  debtor  ? 

After  reflecting  well  on  the  transaction,  I  ;affix  the  sum  which  I 
can  demand  of  him  or  it. 

Will  you  explain  to  me  how  things  or  objects  can  owe  us  when 
we  have  them  ? 

Perhaps  we  had  better  begin  with  the  definition  of  the  word 
dollar. 

Very  well ;  how  do  you  define  the  word  dollar  ? 

Dollar  is  both  the  name  of  a  coin,  and  the  name  of  a  measure  of 
a  quantity  of  value.  As  a  measure,  it  conveys  the  same  idea 
of  value  as  yard  does  of  space,  pound  of  weight.  A  pound  is 
a  measure  of  weight,  and  a  dollar  is  a  measure  of  value.  We 
may  have  ten  yards  of  cloth,  ten  Jeet  of  land,  ten  pounds  of 


it 


QUESTIONS  AND  ANSWERS. 


63 


iron  or  gold  :  we  may  have  ten  dollars  in  either  of  these  arti- 
cles, as  well  as  in  cash  or  money. 

23.  Q.  Well,  if  I  have  $1,000,  how  can  there  be  any  debt,  when  I  have 

the  sum  1 
A.  If  you  have  $1,000,  you  must  have  that  amount  of  value  in  some 
kind  of  property,  because  that  sum  is  only  a  quantity  of  value 
(unless  you  speak  of  a  thousand  pieces  of  coin) ;  therefore, 
finish  your  question,  and  tell  me  what  you  have  the  $1,000  in. 

24.  Q.  If  I  have  $1,000  in  money,  how  does  anything  owe  me  ? 

A.  Money  and  cash  are  only  names  of  property :  if  you  had  $1,000 
in  land  or  merchandise,  could  not  these  owe  you  for  the  value 
invested  in  them  1  Why,  then,  does  not  the  money  owe  you 
for  that  sum  ? 

25.  Q.  But,  is  not  that  imagination  t 

A.  No,  sir ;  not  unless  the  law  is  so.  The  law  makes  prooerty  and 
things  liable  for  debts.  The  law  that  supports  your  claim  on 
a  person  for  $1,000,  supports  it  belter  on  a  property,  because 
it  maintains  you  in  your  authority  over  and  possession  of  the 
property,  until  your  claim  is  satisfied. 

26.  Q.  You  understand,  then,  that  a  thousand  dollars  means  a  quantity 

of  value;  and  if  that  value  be  in  merchandise,  the  merchan- 
dise must  owe  for  that  value ;  if  it  be  invested  in  houses  and 
lands,  those,  or  real  estate,  must  owe  for  that  value ;  and  if  it 
be  in  cash  or  money,  it  must  owe  1 
A.  Yes,  sir ;  if  it  is  not  so,  the  science  of  book-keeping  is  wrong, 
and  we  can  never  more  use  the  word  debtor  as  applied  to  things. 

27.  Q.  The  science  is  right ;  and  you  will  do  well,  whenever  you  pay 

out  any  sum,  to  ascertain,  with  care,  what,  as  well  as  who,  you 
can  charge  for  it. 
Why  do  you,  in  the  first  entry  of  the  Journal  of  this  book,  carry 
out  into  the  last  column  the  two  amounts  1 
A,  Merely  to  show  that  the  sums  of  the  debtors,  and  the  sums  of 
the  creditors,  form  two  equal  amounts. 

28.  Q.  Why  ought  the  debtor  and  creditor  sums  equal  each  other  1 

A.  When  a  person  owes  us,  we  must  of  necessity  owe  some  thing 
for  the  sum  that  he  owes  us.  This  is  the  case  in  every  trans- 
action ;  therefore  the  debtor  and  creditor  sum  or  sums  are 
always  equal  in  a  correct  Journal  entry. 

29.  Q.  How  do  you  Journalize  this — A  friend  makes  you  a  present  of 

S1,000  in  cash  1     And  how  explain  it  ? 
A.  Supposing  my  name  to  be  Thos.  Blanchard,  my  entry  would  be— 

Cash  Dr. 

To  Thomas  Blanchard $1,000  00 

Cash  is  debtor,  because  it  owes  me  the  value  it  contains,  or  that 
1  have  in  it ;  and  I,  myself,  become  creditor,  because  I  owe 
nobody  for  this  value  :  it  augments  my  capital. 

30.  Q.  I  have  seen  systems  of  book-keeping  in  which  "  Profit  and  Loss" 

is  credited,  in  such  a  transaction.     Is  it  wrong,  and  why  ? 


:  It 


I  i 


II 


i^K  ^i 


!^     i 


}  1 


64  QUESTIONS  AND  ANSWERS. 

A,  It  is  wrong,  because  •♦  Profit  and  Loss"  is  the  account  which 
represents  our  business  :  it  should  show  only  the  gains  and 
losses  that  result  from  the  business.  In  this  transaction,  wo 
do  not  owe  our  business  for  the  $1,000,  because  our  business 
did  not  produce  the  sum.  If,  therefore,  we  carry  such  sums 
to  the  Profit  and  Loss  account,  the  purpose  for  which  it  is 
opened  will  be  completely  frustrated. 

Which  do  you  place  first  in  a  Journal  entry,  the  debtors  or  the 
creditors  ? 

The  names  of  the  debtors.  I  do  not  know  why  they  are  always 
placed  before  the  creditors,  unless  it  be  that  people  generally 
tliink  more  of  their  debtors  than  they  do  of  their  creditors. 

Very  well  thouo;^ht  of !     Can  you  inform  me  why  we  never  see 

the  word  creditor  (Cr.)  in  the  Journal  ? 
Because  the  word  debtor  (Dr.)  distinguishes  the  debtors  ;  and 

there  being  only  two  kinds,  one  being  shown,  the  others  must 

of  course  be  the  creditors. 

To  whom  do  the  "  Sundries'*  owe,  in  the  Journal  entry  of  Janu- 
ary 19  1 
They  owe  the  owners  of  the  books — Blanchard  &  Marsh. 

That  entry  reads — ♦•  Sundries  Dr.  to  Oliver  Otis  &  Co.'*     "Why 

do  you  say,  '•  to  Blanchard  &  Marsh  V* 
Because  there  are  certain  words  always  understood  to  follow  the 

word  '•  Dr.,"  and  certain  others  understood  to  precede  the 

names  of  the  creditors,  in  every  entry  in  the  Journal. 
What  are  those  words  ] 
Those  which  follow  the  term  "  Dr."  are,  **to  us;**  and  those  that 

precede  the  creditors  are,  "  We  are  debtor." 
Why  are  not  those  words  used  in  Journal  entries  ? 
Those  words  are  superfluous ;  because  the  mere  act  of  writing 

in  our  books  any  person  or  thing  Dr.,  indicates  that  that  person 

or  thing  is  debtor  to  us,  or  is  our  debtor. 

What  relation  does  the  Journal  bear  to  the  Day-Book  and  Lecher  ? 
An  intermediate  relation — serving  to  convey  the  debtors  and 
creditors  from  the  former  to  the  latter. 

In  Journalizing,  do  you  make  it  a  rule  to  extend  the  same  sura 
in  the  Journal  that  you  extend  into  the  outer  column  in  the 
Day-Book  ? 
A.  By  no  means :  the  position  that  sums  occupy  in  the  Day-Book 
should  be  no  guide  for  their  position  in  the  Journal. 

39.  Q.  Have  you  heard  of  a  rule  for  Journalizing,founded  on  the  worda 

^^ receive"  and  ''deliver?" 
A.  Yes,  sir — in  these  words  : — 

"  By  Journal  laws,  what  T  receive, 
Is  debtor  made  to  what  I  give,** 

40.  Q.  How  does  this  rule  apply,  and  how  not  ? 

A.  This  rule  originates  in  the  coincidence  that  things  are  often 


QUESTIONS  AND  ANSWERS. 


65 


31.  Q. 
A. 

32.  Q. 
A. 

33.  Q. 

A. 

34.  Q. 

A, 


35.  Q. 
A. 

36.  Q. 
A. 


37.  Q. 

38.  Q. 


41.  Q. 
A. 

42.  Q. 
A. 

43.  Q. 
A. 

44.  Q. 
A, 

45.  a 


46.  Q. 
A. 


47.  Q. 
A. 

48.  Q. 
A. 


49.  Q. 


A. 


50.  Q. 


debtor  and  received  at  the  same  time.  But  this  is  far  from 
being  always  the  case  :  a  striking  instance  may  be  found  in  the 
transaction  of  3d  of  April  in  this  volume.  But  if  the  things 
received  were  always  debtors,  and  those  delivered,  creditors, 
such  a  rule  would  be  unworthy  of  science,  because,  to  admit 
this  rule,  one  must  admit  that  the  word  receive  means  debtor, 
and  that  deliver  signifies  creditor. 

For  what  purpose  is  the  Leger  ? 

To  show  the  accounts  of  all  those  that  owe  us,  and  of  all  those 
that  we  owe. 

What  do  you  understand  by  posting  or  legerizing  ? 

Transferring  the  sums  from  the  Journal  to  the  teger.  Posting 
sometimes  includes  Journalizing. 

How  often  should  books  be  posted  ? 

Daily,  weekly,  or  monthly,  according  to  the  nature  of  the  busi- 
ness. 

What  are  the  names  of  the  auxiliary  books  ? 

Cash-Book,  Invoice-Book,  Sales-Book,  and  Bill-Book.     These 

are  the  principal,  and  appear  indispensable  in  every  business. 
What  is  the  use  of  the  Cash-Book  ? 
It  shows  every  sum  of  cash  or  money  which  we  receive  or  pay. 

It  serves  as  a  check  on  that  kind  of  property ;  far  the  balance 

between  its  debtor  and  creditor  sides,  should  agree  with  the 

money  on  hand. 

When  do  you  balance  the  Cash-Book,  and  how  ? 

Daily — when  the  business  of  the  day  is  over.  The  book  is  bal- 
anced thus  :  Obtain  the  difference  between  the  debtor  and 
creditor  pages,  see  that  the  difference  agrees  with  the  money 
we  have  on  hand,  and  make  an  entry  on  the  credit  side  by 
writing  "  Balance  on  hand"  with  the  difference ;  and  when  the 
account  is  ruled  and  footed,  it  will  be  balanced. 

When  should  entries  be  made  in  the  Invoice-Book  ? 

At  the  time  the  goods  are  received,  the  invoice,  or  bill  of  them, 
should  be  copied  in  the  book. 

When  are  entries  to  be  made  in  the  Sales-Book  ? 

At  the  time  the  goods  are  selected,  or  ordered  by  the  purchaser, 

they  should  be  described — quantity,  quality,  and  price — in  the 

Sales-Book. 

When,  and  how,  do  you  take  entries  from  the  Invoice  and  Sales 
Books  to  the  Day-Book  ? 

Single  purchases  and  sales  may  be  carried  from  the  Invoice  and 
Sales-Books  to  the  Day-Book  separately,  if  they  are  of  large 
amounts ;  or,  we  may  with  propriety  convey  the  purchases  of 
a  month  or  week,  from  the  Invoice-Book  to  the  Day-Book,  in 
only  one  entry ;  and  the  sales  may  be  taken  into  the  Day-Book 
in  the  same  manner. 

What  advantage  is  there  in  making  monthly  entries  from  the 
Invoice  and  Sales-Books  into  the  Day-Book,  over  that  of  car- 
•7 


'. 


I    ;' 


66  QUESTIONS  AND  ANSWERS. 

rylng  the  purchases  and  sales  into  the  Day-Book  in  separate 
entries  ] 
A.  Considerable  time  and  space  are  saved  ;  for,  by  the  monthly 
method,  the  sales  and  purchases  go  to  the  merchandise  account 
in  totals. 

51.  Q.  When  should  entries  be  made  in  the  Bill-Book  1 

A.  When  notes  are  issued  or  received,  and  when  they  are  paid  or 
negotiated. 

52.  Q.  We  know  many  book-keepers  who  post  directly  from  the  Invoice, 

Sales,  and  Cash  Books,  to  the  Leger.  What  is  there  objection- 
able in  that  method  1 
A.  When  that  method  is  pursued,  there  will  be  no  book  of  the  set 
that  will  show  a  complete  history  of  the  business,  or  a  record 
of  the  transactions  as  they  occuiTcd  ;  and  if  at  any  period  the 
books  should  not  balance,  the  trouble  of  finding  the  errors 
would  be  greatly  augmented. 

Note. — There  are  some  houses  in  which  the  transactions,  particularly 
the  sales,  are  so  numerous  that  it  is  necessary  to  adopt  the  most 
abbreviated  system,  or  the  book-keeper  would  soon  be  far  in  the  rear 
of  the  business.  By  the  method  referred  to,  no  book  called  Journal 
is  used ;  but,  nevertheless,  all  the  knowledge  which  that  book  em- 
braces, is  required,  even  in  a  greater  ratio,  because  that  system 
makes  the  Cash,  Invoice,  and  Sales-Books,  serve  the  double  purpose 
of  Journals. 

53.  Q.  What  is  a  Trial  Balance  1 

A.  It  is  a  sheet  which  shows  the  balances  of  all  the  accounts  in  the 
Leger,  arranged  in  two  columns — one  of  debtors,  and  one  of 
creditors. 

54.  Q.  What  is  the  object  of  the  Trial  Balance  1 

A.  To  prove  the  books,  and  to  exhibit  the  balances.  If  the  posting, 
additions,  and  subtractions,  are  correct,  the  two  columns  will 
add  up  alike. 

55.  Q.  Should  they  not  equal,  how  would  you  proceed  to  find  the  errors  1 
A.  1st.  By  examining  the  Journal  entries,  to  see  if  the  debtors  and 

creditors  in  each  entry  equal  each  other.  2d.  By  examining 
the  posting  from  the  Journal  to  the  Leger,  and  by  re-adding 
and  re-subtracting  the  accounts  in  the  Leger.  I  would  repeat 
these,  until  I  had  found  the  error  or  errors. 

56.  Q.  How  often  is  it  necessary  to  make  a  Trial  Balance  1 

A.  Monthly,  or  quarterly.  Sometimes  it  is  left  until  the  end  of  a 
year,  when  it  rarely  balances. 

57.  Q.  If  you  buy  merchandise  for  cash,  in  what  books  do  you  make 

entries  1 
A,  In  the  Cash,  Invoice,  and  Day  Books. 

58.  Q.  If  you  buy  merchandise  on  credit  1 
A.  In  the  Invoice  and  Day  Books. 

59.  Q.  If  you  buy  merchandise  on  your  note  t 
A.  In  the  Invoice,  Bill,  and  Day  Books. 


QUESTIONS  AND  ANSWERS.  67 

60.  Q.  If  you  merely  exchange  merchandise  1 
^.  In  the  Invoice  and  Sales  Books. 

61.  Q.  If  you  sell  merchandise  on  credit  ] 
A.  In  the  Sales  and  Day  Books. 

62.  Q.  If  you  sell  merchandise  for  cash  1  / 
'  ^.  In  the  Sales,  Cash,  and  Day  Books. 

63   Q   If  you  sell  merchandise  to  John  Sims  on  his  note  t 

*  A.  In  the  Sales,  Bill,  and  Day  Books. 
64.  Q.  If  you  receive  money  of  John  Sims  ? 

'  ^!  In  the  Cash  and  Day  Books. 
65   Q   If  John  Sims  pays  a  note  you  hold  against  him  t 

'  I.  In  the  Cash,  Bill,  and  Day  Books. 
66.  Q.  If  you  pay  for  postages  V 

A.  In  a  petty  Cash-Book. 
67    Q.  If  you  pay  rent  of  your  store  ? 
A    In  the  Cash-Book  and  Day-Book. 

68.  Q*  If  there  is  to-day  due  J.  Sims,  for  services  as  clerk  in  your  em 

ployment,  $500  ] 
A.  In  the  Day-Book. 

69.  Q.  Will  you  make  the  Day-Book  entry  ? 

A.  Amount  of  salary  due  John  Sims  for  services  as  clerk,  ^^ 

up  to  this  date **" 

70  Q.  What  is  your  Journal  entry  ? 

'X.       Store^x^^e^n^se^s^^^ Dr. ^^^^  ^^ 

71  O   Suppose,  after  posting  the  above,  the  balance  of  J.  Sims' account 

^*       i^^$200,  and  that  you  pay  it :  what  will  be  your  JoumaLentry  1 

A,       John  Sims  I^r. 

ToCash ^^""  "" 

72.  Q.  If  you  pay  the  rent  of  your  dwelling-house,  in  what  books  do 

you  enter  ] 
A.  In  the  Cash-Book  and  Day-Book. 

73.  Q.  What  would  be  your  Journal  entry  1 

A.       Thos.  Blanchard  (my  name)         Dr.  *9.a  nn 

ToCash ^^^^  "^ 

74.  Q.  If  you  pay  your  note,  now  due,  in  what  books  do  you  make 

entries  ? 
A.  In  the  Cash,  Bill,  and  Day  Books. 

75.  Q.  If  you  deliver  your  note  to  P.  Harris  for  balance  of  account  T 
*  A.  In  the  Bill  and  Day  Books. 

76.  Q.  If  P.  Harris  gives  you  his  note  for  balance  of  account! 
'  A.  In  the  Bill  and  Day  Books. 

77.  Q.  What  difference  is  there  between  those  notes  1 

A    One  is  in  my  favor ;  the  other  agamst  me.    I  call  one     Bills  Re- 
ceivable;"  the  other,  "Bills  Payable." 


\l 


cs 

78.  Q. 

A. 

79.  Q. 
A. 


80.  Q. 
A. 


QUESTIONS  AND  ANSWERS. 

^^  ^'  ^^^^"«'^"o^e  in  your  favor  is  due,  and  remains  unpaid  in 
what  books  do  you  make  entries  1  unpaid,  m 

In  the  Bill-Book  and  Day-Book.  ' 

What  will  be  your  Journal  entry  t 
P.  Harris    ^  j)j. 

To  Bills  Receivable '. jj^ooq  oo 

Z^TZ"  "'l',,^'"'-  ^^"'"  ""  ^^^'°^'  ^='«"  y°"  ^'i'l  hold  the 

I  tWnt  nn7^      ^^u"  ""'^  ""^^  y°"  """'•  «^  "'«"  "^  «  did  before  ? 

dead      R  J"     .1.  "^  '""'  °^  '^^  "°'^  "-^^  expired-it  is  now 

"the?«wnli  "    V   «  |«  due,  our  claim  begins  on  its  author: 
the  law  allows  it,  and  the  court  awards  it." 

^?rj;7^'*  "'■5  '"','""?  •''^'  "'»''y  6ook-keepers  do  not  charge  the  nnr- 

way  t°o"d"oso'^''Tl'"  "T""''  ^'"^"  '•"^=  "•"  "  i^  the  mSre  regSlar 
way  to  do  so.     The  party  to  a  note  over  due,  undoubtedly  owes  (he 

'^tl/:^''  «^y;;:ilf-./rarr^V.  ;,^^e  (or  acceptance)  w  due  and 

paid,''  what  kmd  of  a  note  is  spoken  of? 
"  Harris's  note''  means  a  note  that  Harris  wrote  or  siffned-a 

note  agamst  him,  and  not  a  note  belonging  to  him. 

If  Mr  James  owes  you  $100,  and  you  accept  $98  for  it,  what 
will  be  your  Journal  entry  ?  f    ^      lui  u,  wnai 

fr^''^'  Dr.  To  J.  James. 

Profit  and  Loss 2  00  $100  00 

If  you  draw  on  a  person,  does  he  become  your  debtor  or  cred- 
itor,  and  in  what  books  do  you  make  entries  ? 

""L^She  JraTisTi^rW  ^  ^^^■^°°'''  ^"^  ■"  '"«  ^"■- 
Why  your  creditor  ? 

Because  I  owe  him  the  sum  for  which  I  have  drawn :  drawing 
on  him  IS  drawing  from  him.  ^wiug 

Should   the  draft  be  returned,  in  what  books  will  you  make 

In  the  Day-Book  and  Bill-Book. 

What  is  accepting  a  draft  ? 

Writing  one's  name  across  the  face  of  it,  by  which  one  agrees  to 
pay  It  when  due.  5    ^o  tu 

CLOSING  ACCOUNTS. 

87.  Q.  What  do  you  understand  by  closing  accounts,  or  balancing  books  ? 
A.  By  closing  accounts,  we  mean  the  act  of  rendering  the  debtor  and 
creditor  sides  of  every  account  equal.  This  is  done  by  trans- 
lernng  the  balances  from  the  many  accounts  to  only  two  ac- 
counts, and  there  showing  the  result  of  the  business  in  a  form 
80  condensed  as  to  be  seen  at  one  view. 


81.  Q. 
A. 

82.  Q. 
A. 

83.  Q. 
A. 

84.  Q. 
A. 

85.  Q. 

A. 

86.  Q. 
A. 


I) 


QUESTIONS  AND  ANSWERS. 


69 


88.  Q. 

A. 

89.  Q. 
A. 

90.  Q. 
A. 


91.  Q. 
A. 


92.  Q. 
A. 

93.  Q. 
A. 


94.  Q. 


A. 

95. 

Q- 

A. 

90. 

Q. 

A. 

97. 

A. 

98. 

A. 

99. 

Q. 

A. 

To  what  do  we  first  direct  our  attention,  in  balancing  or  closing 
books  1 

To  the  Trial  Balance. 

After  that,  what  next  claims  our  attention  ? 

The  Balance  Sheet ;  by  which  we  show  the  result  of  our  busi- 
ness— our  assets  and  liabilities,  our  gains  and  losses. 

Why  is  it  necessary  to  close  the  books,  when  the  Balance  Sheet 
exhibits  the  situation  of  the  affairs  ] 

The  Balance  Sheet  may  suffice  for  thQ  closing,  when  the  books 
are  not  to  be  changed ;  but  when  the  gain  or  loss  is  to  be  divi- 
ded and  carried  to  the  partners*  accounts,  or  when  new  books 
are  to  be  brought  into  use,  the  closing  entries  in  the  Day-Book, 
Journal,  and  Leger,  become  necessary. 

What  follows  the  Balance  Sheet,  in  closing  the  books  1 

We  proceed  then  to  make  entries  in  the  Day-Book,  composed 

from  the  contents  of  the  Balance  Sheet,  which  we  Journalize 

and  post. 

Which  side  of  the  Cash  account  can  exceed  the  other  ? 

The  debtor  side.    The  creditor  side  can  never  exceed  the  debtor, 

and  be  correct. 
Why  is  the  debtor  side  of  the  Cash  account  generally  more  in 

amount  than  the  creditor  ? 
Because  that  kind  of  property  called  cash  is  of  an  unvarying 

value  :  it  comes  in  and  goes  out  of  our  possession,  or  is  bought 

and  sold,  at  the  same  price ;  because  we  can  not  pay  out  more 

money  than  we  have  received. 

To  what  account  do  you  transfer  the  balances  of  property  and 

debts,  at  the  closing  of  the  books  ? 
To  an  account  called  "  Balances,"  opened  for  that  purpose. 

To  what  account  do  you  transfer  the  balances  of  gains  and  losses, 

at  the  closing  ? 
To  the  "  Profit  and  Loss"  account. 

To  where  do  you  transfer  the  balance  of  the  "  Profit  and  Loss" 

account  ? 
To  the  accounts  of  the  partners,  or  to  that  of  the  owner  of  the 

books. 

Which  side  of  the  account  of  Bills  Receivahle  can  exceed  ? 
The  debtor.     The  excess  ought  to  agree  with  the  notes  on  hand, 
as  appears  by  the  Bill-Book. 

Which  side  of  the  account  of  Bills  Payable  can  exceed  ? 
The  creditor.     The  excess  should  agree  with  the  amount  of  notes 
out  against  us,  as  appears  by  the  Bill-Book. 

Is  there  more  than  one  method  of  making  an  Account-Cur- 
rent ? 

There  are  three  methods  :  1st,  without  interest ;  2d,  with  in- 
terest ;  and  3d,  by  averaging,  to  find  when  the  balance  is 
due. 


(  . 


hi 


ifi 


70 


QUESTIONS  AND  ANSWERS. 


LOO.  Q.  Which  part  of  book-keeping  embraces  most  of  the  science  ? 
A.  That  part  called  Journalizing. 

101.  Q.  When  a  set  of  books  is  kept  by  double-entry,  and  the  book- 
keeper dispenses  with  the  Journal,  does  he  dispense  with 
Journalizing  % 
A.  No,  sir.  The  Journalizing  must  be  done  somewhere :  the 
principle  of  the  Journal  must  regulate  or  govern  all  his 
entries. 


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V 


NOTE. 

This  book  is  designed  to  contain  a  complete  history  of  the  business. 

Entries  in  this  book  are  made  up  from  various  sources ;  those  embracing 
«»ies  are  taken  from  the  sales-book  ;  those  embracing  purchases  of  goods  are 
taken  from  the  invoice-book  ;  cash  sums  come  from  the  cash-book  ;  notes 
given  or  received  come  from  the  bill-book;  while  others,  of  a  different  or 
various  nature,  appear  first  in  the  day-book. 

The  only  rule  I  can  give  for  making  or  composing  entries  in  the  day-book  is 
this  ;  adhere  to  the  truth,  state  the  transaction  with  its  parts  in  the  order  that 
tliey  occur,  use  as  few  words  as  possible,  and  let  them  be  to  the  point  or  pur- 
pose. 

From  this  book  the  transactions  pass  in  a  journalized  form,  into  the  journal. 


1 


New  York,  January  5,  1850. 


,  Thomas  Blanchard  and  Christopher  C.  Marsh  having, 
as  per  articles  of  agreement  dated  1st  instant,  entered 
into  partnership,  advance  the  following  capital : — 

Thomas  Blanchard  advances — 

Cash,  deposited S26,000  00 

Note  No.  1,  as  per  Bill-Book 2,000  00 


C.  C.  Marsh  advances — 

Cash,  deposited $12,000  00 

Note  No.  2,  as  per  Bill-Book 2,670  00 

Merchandise,  as  per  Invoice-Book,  fol.  1 3,125  00 

Charles  Lawrence,  balance  of  account 140  00 


it 


Thomas  Blanchard  and  Christr.  C.  Marsh  are  indebted 
to  Notes  in  favor  of  sundry  persons,  as  per  Bill-Book, 
which  are  assumed,  viz. : — 

No.  1,  on  Thos.  Blanchard,  for $1,080  00 

No.  2,  on  C.  C.  Marsh,         for 1,230  00 


Paid  Cash  for  sundry  Store-Fixtures   bought  of  W. 
Wharton,  amounting  to .° 


8 


Sold  Merchandise  to  Paul  Harris,  at  sixty  days,  as  per 
Sales-Book,  folio  1 


10 


Sold  Merchandise  to  William  Blakeley,  on  his  Note, 
No.  3,  at  thirty  days,  as  per  Sales-Book,  folio-  1 


2,310 


300 


325 


12 


Sold  Merchandise  to  S.  H.  Lovell,  for  Cash,  as  per 
Sales-Book,  fol.  1,  amounting  to 


13 


500 


125 


Sold  Merchandise  to  Oliver  Otis  &  Co.,  to  be  paid  for 

on  19th  inst.,  as  follows  : — 

Half  in  Cash,  and  half  in  Note  at  thirty  days,  as  per 

Sales-Book :  j     2,000 


14 


Bought  Merchandise  of  Henry  Austin,  at  thirty  days, 
as  per  Invoice-Book,  fol.  1 


10 


73 


00 


00 


00 


00 


00 


00 


1,500  i  00 


I 


I 

i 

I 


;;!! 


''I 


'r, 
f 


New   York,   January    14,   1850. 


Bought  Merchandise  of  Rogers  &  Brothers  for  Cash,  as 
per  Invoice-Book,  fol.  2 

16  

Bought  Merchandise  of  Rogers   &  Brothers,  on   our 
Note,  No.  3,  at  ninety  days,  as  per  Invoice-Book 

(I 


2  i 


2 


Bought  of  Christopher  Bernard  an  invoice  of  Rice, 
amounting  to,  per  Invoice-Book,  $3,200 ;  and  paid  him 
as  foUow^s : — 

In  Cash,  amounting  to $2,000  00 

In  Merchandise,  as  per  Sales-Book 1,200  00 

17  ._  _ 

Lent  Cash  to  James  Truman,  until  22d  inst 

19 

Received  of  Oliver  Otis  &  Co.,  for  balance  of  account, 
as  follows : — 

Their  Note,  No.  4,  at  thirty  days,  for $1,000  00 

In  Cash,  amounting  to 1,000  00 

20  _ 


Sold  Merchandise  for  Cash,  to  sundry  persons,  as  per 
Sales-Book 

.21 :^ 


Received  of  Paul  Harris  his  Note,  No.  5,  at  sixty  days, 
dated  8th  inst.,  for  bill  of  that  date 

22 


Received  Cash  of  James  Truman  in  full  for  loan  of 
17th  inst 


<i 


Delivered  to  Henry  Austin  our  Note,  No.  4,  at  thirty 
days,  for  bill  of  14th  inst 

24  .___ 


Sold  Merchandise  this  day,  as  follows : — 
To  S.  H.  Lovell,  on  account,  as  per  Sales- 
Book $250  00 

For  Cash  to  sundry  persons 160  00 


$  800  i    00 


74 


2,100 


250 


00 


3,200  ,    00 


1,000      00 


2,000      CO 


410 


CO 


325      00 


1,000  !    00 


1,500      00 


CO 


New  York,   January   26,   1850. 


Sold  Merchandise  as  follows,  as  per  Sales-Book  : — 

To  Oliver  Otis  &  Co.,  on  account $200  00 

To  William  Blakeley,  on  account 200  00         $  400      00 


28 


Lent  Cash  to  James  Truman,  on  his  Note,  No.  6,  at 

twelve  months,  endorsed  by  Paul  Harris $2,000  00 

Interest  for  one  year,  at  6  ®|q,  added 121   00 


30 


Paid  Cash  for  our  Note,  No.  2,  in  favor  of  T.  P.  Cope 
&  Sons,  now  due 


February  2. 


Paid  Henry  Austin  for  our  acceptance,  No.  1,  for  $1,080, 
as  follows : — 

In  Merchandise,  as  per  Sales-Book $550  00 

"  Cash,  amounting  to 525  32 

"  Discount,  26  days  allowed,  at  6  °|o 4  68 


« 


Paid  Cash  for  sundry  expenses  of  Store  last  month,  as 
per  petty  Cash-Book 


Shipped   per  Brig  Franklin,  Kay,    and   consigned  to 
Lockhart  &  Arrott,  New  Orleans,  to  be  sold  for  our 

account,  an  Invoice  of  Hardware $1,722  22 

Paid  Cash  for  Insurance  and  shipping  ex- 
penses       100  00 


Sold  to  Christopher  Bernard,  on  his  Note,  No.  7,  at  six 
months,  the  remainder  of  Hardware,  as  per  Sales-Book 

9    


William  Blakeley  has  failed ;  the  balance  of  his  account 
in  our  favor  is  $200,  for  which  we  have  received,  in 

^ash ^100  00 

The  Balance  is  lost XOO  00 


75 


2,121      00 


1,230      00 


1,080   .   00 


65      00 


1,822      22 


320      00 

i 


200      00 


t  1 


I 


r 


t, 


,1  fc 

^1      J 

|.  mi 

r 


New  York,  February   12,  1850. 


Bought  Merchandise  of  Haven  &  Smith,  as  per  Invoice- 
Book,  $1,240;  delivered  to  them  in  payment,  as  fol- 
lows :— 

Our  order  at  sight  on  Charles  Lawrenr.e,  for.  $  140  00 
Oliver  Otis  &  Co.'s  Note,  No.  4,  duo  21st 

inst.,for 1,000  00 

And  Cash  for  the  balance 100  00 


12 


William  Blakeley's  Note,  No.  3,  is  due  and  not  paid  . . 

13  


Received  per  Steamer  Washington,  Floyd,  consigned  to 
us  by  Walter  Howard,  London,  pursuant  to  our  order 
and  for  our  account,  an  Invoice  of  Dry  Goods,  amount- 
ing to  oei,100  sterling $4,888  89 

Signed  Bonds,  Nos.  5,  6,  and  7,  to  the  Cus- 
tomhouse for  Duties 1,222  22 

Paid  Cash  for  Freight 422  00 


$  1,240      00 


500      00 


(< 


Received  of  William  Blakeley,  for  balance  of  his  ac- 
count of  $500,  as  follows  : 
His  Draft  on  S.  H.  Lovell,   accepted  at  thirty  days, 

for $250  00 

Interest  added  for  33  days 1  37 


Face  of  the  acceptance.  No.  8 -  251  37 

William  Blakeley  having  failed,  the  balance  is 

lost 250  00 


16 


Accepted  Draft  at  twenty  days'  sight.  No.  8,  drawn  by 
Walter  Howard,  London,  in  favor  of  Lewis  Clapier, 
for 


17 


Delivered  Merchandise  to  Henry  Austin,  in  payment 
of  our  Note,  No.  4,  due  16th  inst.,  as  per  Sales-Book  . . 


20.- 


Shipped  per  Steamer  Atlantic,  West,  consigned  to  Wal- 
ter Howard,  London,  pursuant  to  his  order,  dated  Jan- 
uary 2,  as  follows : — 

Forward. 

n 


6,533      11 


501      37 


4,444      44 


1500 


00 


New  York,   February  20,   1850. 


4 


Brought. 

120  tierces  Rice,  420  cwt.,  at  $3.50 $1,470  00 

280  barrels  Flour,                 at    4.50 1,260  00 

Paid  Cash  for  shipping  expenses 75  00 

Paid  Cash  to  Pha3tiix  Insurance  Co.,  for  3  ^|o 

premium  on  $2,805,  and  for  policy  $1 85   15 

Our  Commission  for  shipping $70  12 

Commission  for  Insuring,  at  J  o|o 14  02  84  14 


I! 


20 


Bought  of  William  Evans,  on  acccount,  280  barrels 
Flour,  as  per  Invoice-Book 


21 


Bartered  with  Christopher  Bernard  an  Invoice  of  Dry- 
Goods  for  the  same  amount  in  Rice,  as  per  Invoice- 
Book .  ^ 


<i 


Exchanged  our  Note,  No.  9,  at  sixty  days,  with  Chris- 
topher Bernard,  for  his  Note,  No.  9,  for  same  amount 
and  time 


>3 


Sold   Merchandise   to   James   Truman,   as   per  Sales- 
Book  ;  received  payment  as  follows  : — 

His  Note,  No.  10,  at  sixty  days,  for $500  00 

In  Cash 12O  00 

The  balance  he  is  to  pay  on  the  26th  inst.,  by 

an  acceptance  for 1,000  00 


24 


Sold  Merchandise  to  Strang,  Adriance,  &  Co.,  on  their 
Note,  No.  11,  at  ninety  days,  as  per  Sales-Book 


It 


Discounted,  at  the  Commercial  Bank,  Strang,  Adriance, 

&  Co.'s  Note,  No.  11,  for $2,000  00 

Discount  for  93  days,  at  6  o|q 31  qO 

Cash  received ' 


25 


Bought  the  Schooner  Josephine,  of  Captain  C.  Da- 
vis, at  $5,000  ;  delivered  to  him  in  payment  as  fol- 
lows : — 

Forward. 


77 


$2,974 


1,260 


29 


1,530 


800 


00 


00 


1,620 


00 


00 


2,000       00 


1,969 


00 


PI 


3' 


I 


New   York,   February   25,  1850. 


Brought. 


Our  Bill  of  Excbange,  at  sixty  days'  sight,  on  Walter 

Howard,  for  dCoOO  sterling $2,222  22 

Exchange  allowed  us,  at  8  ®|o  premium 177  78 

And  Cash  for  the  balance 2,G00  00 


26 


Received  of  James  Truman  his  Draft,  at  sight,  on  Wil- 
liam Evans,  which  is  accepted  and  passed  to  account, 
for 


« 


Paid  Cash  for  sundry  Bills  of  Rigging  and  repairs  for 
our  Schooner  Josephine 


27 


Shipped  per  Schooner  Josephine,  Whipple,  consigned 
to  H.  B.  Walker  &  Co.,  Port  au  Prince,  to  be  sold  for 
our  account,  as  follows  : — 

An  Invoice  of  Domestic  Goods,  received  of  Irvine 
Fisher,    in    exchange    for   same    amount    in    Imported 

Goods $1'200  00 

200  boxes  Soap,  4,000  lbs $  300  00 

200      "      Sperm  Candles 1,890  00    2,190  00 

Which  we  have  bougiit  of  J.  R. — 

Dallett  &  Co.,  on  our  Note,  No.  10,  at  sixty 
days. 

144  boxes  Cheese,  bought  of  Charles  Law- 
rence on  account 288  00 

Amount  of  Freight  on  the  above,  per  our 
Schooner  Josephine 230  00 


28 


$  5,000 


Insured,  at  the  Phoenix  Insurance  office,  our  Shipment 
to  Port  au  Prince  of  27th  inst. ;  passed  our  Note,  No. 

11,  for  2  o|o  prem.  on  $4,028,  and  policy $  81  56 

Paid  Cash  for  Shipping  expenses 120  00 


it 


Effected  Insurance  with  the  Atlantic  Insurance  Co.,  on 
our  Schooner  Josephine,  for  $5,000,  nt  ^  %  premium, 
which  we  have  paid  in  Cash  (policy  $1) 


78 


00 


1,000      00 


155 


00 


3,908 


00 


201 


56 


26      00 


New   York,  March  2,  1850. 


Sold  Merchandise  as  per  Sales-Book,  as  follows : — 

To  Oliver  Otis  &  Co.,  on  account $500  00 

To  William  Blakeley,  and  received  of  him  in 
payment,  Charles  Lawrence's  order  on  us  for 
the  same  amount 288  00 


M 


Paid  Cash  for  sundry  expenses  of  Store,  as  per  petty 
Cash-Book 


Received  per  Brig  Clio,  Kirk,  consigned  to  us  by  Jo- 
seph De  Nones,  Cadiz,  to  be  sold  for  his  account,  an 
Invoice  of  Fruit,  amounting  to  $2,700. 


Paid  Cash  for  Freight  and  Duties. 


(( 


Sold  for  Cash,  as  per  Sales-Book,  as  follows : — 
152  boxes  of  De  Nones'  Consignment 


Sold  of  De  Nones'  Consignment,  as  per  Sales-Book,  as 

follows : — 

To  Charles  Lawrence,  on  account — 

25  boxes  Oranges,  at  $3 $75  00 

200  jars     Olives,      at      .50 100  00 


175  00 
To  Thomas  Milton,  for  Cash — 
100  boxes  Oranges,  at  $3 300  00 


Received   Casn  for  Oliver  Otis  &  Co.'s   acceptance. 
No.  2,  at  sixty  days,  now  due 


it 


$  788    ,  00 


Received  of  Oliver  Otis  &  Co.,  their  Note,  No.  12,  at 

sixty  days,  for  balance  of  account $700  00    I  ■ 

Interest  for  63  days  added,  at  6  ®|o 7  35 


Paid  Cash  to  sundry  persons  for  damages  found  in  Sales 
for  account  of  J.  De  Nones,  of  3d  and  4th  inst.  $45  00 
Made  allowance  to  Charles  Lawrence,  on  ac- 
count, on  same  Sales 10  00 


79 


45 


00 


460   00 


456 


00 


475 


00 


2,670   00 


707  1  35 


55 


00 


^'  I' 

m 


•I 


i   ! 


|i 


8 


New   York,  March  9,  1850. 


Sold  to  S.  H.  Lovell  on  account,  as  per  Sales-Bo  k,  as 
follows : — 

20  tierces  Rice,  amounting  to $245  00 

/)0  boxes  of  De  Nones*  Fruit,  at  $3 150  00 


Paid  Cash  for  our  acceptance,  No.  8,  in  favor  of  Lewis 
Clapier,  being  Walter  Howard's  Draft,  for 


ti 


Received  Cash  of  S.  H.  Lovell,  for  balance  of  account 
of  January  24th 

10 

Sold  per  L.  M.  Hoffman  &  Co.,  for  Cash,  De  Nones* 
Consignment,  as  follows  : — 

150  boxes  Lemons,     at  $5 $750  00 

110      "      Oranges,     at    3.80 418  00 

220  jars     Olives,        at      .50 110  00 

1,278  00 

Auctioneers*  Commission,  at  3^  °|o 44  73 

Net  amount  received 


41 


Received  to  our  account  the  remainder  of  De  Nones' 
Invoice  of  Fruit,  being  4,000  jars  Olives,  at  market 
price — S  .50 

-^  12 


Received  Cash  of  Paul  Harris,  as  follows : — 

For  his  Note,  No.  5,  now  due $325  00 

For  1,000  jars  Olives,  sold  him  at  $  .52^ 525  00 


14 


Rendered  to  Joseph  De  Nones,  Cadiz,  account-sales  of 
Invoice  of  Fruit,  received  per  Brig  Clio,  from  which 
we  obtain  the  following : — 
Our  Commission  on  total  Sales,  $4,314.27,  at  5  ®|o, 

is $215  71 

Storage,  Advertising,  and  Labor 52  24 

Net  proceeds,  due  May  25  |  50 3,531  32 


16 


Received  from  Lockhart  &  Arrott,  N.  Orleans,  account- 
sales  of  our  Shipment  to  them  of  Feb.  4  :  Net  proceeds 


80 


$  395      00 


4,444 


44 


250  :    00 


1,233      27 


2,000      00 


850      00 


3,799      27 


2,020  '     00 

I 

I 


New  York,   March   16,   1850. 


Received   Cash   for  S.  H.  Lovell's  acceptance,  No.  8, 
being  William  Blakeley's  Draft 


18 


Received  Cash  of  Paul  Harris,  to  be  applied  for  him  in 
buying  Merchandise  on  joint  account  with  us,  as  per 
agreement 


20 


Bought  of  Bunker  &  Stan-  for  Cash,  in  joint  account 
with  Paul  Harris,  800  barrels  Flour,  as  per  Invoice- 
Book,  $4,000. 

Of  which  Paul  Harris's  half  is $2,000  00 

Our  half  is 2,000  00 


21 


Received  of  Paul  Harris,  to  be  sold  in  joint  account, 
500  barrels  Flour,  at  $4.75,  amounting,  per  Invoice- 
Book,  to  $2,375;  of  which  our  half  is 


23 


Sold  to  E.  K.  Collins  500  barrels  Flour  in  joint  account 

with  P.  Harris,  at  $6 

Received  payment   as  follows : — 

Our  Note,  No.  3,  in  favor  of  Rogers  &  Brothers,  due 

April  19th,  for $2,100  00 

Interest  allowed  us  for  26  days,  at  6  ^'Iq 9  10 

2,090  90 
Received  the  balance  in  Cash 909  10 


25 
Paid  Cash  to  C.  C.  Marsh,  on  account. 

26 


8 


Bought  of  Brown  Brothers  &  Co.  their  Bill  of  Ex- 
change on  Brown,  Shipley,  &  Co.,  Liverpool,  at  twenty 

days*  sight,  for  <£1,000  sterling $4,444  44 

Exchange,  at  8  ''Iq  prem.  on  $4,444.44 355  56 

Delivered  to  them  in  payment — 

400  barrels  Flour  in  joint  account  with  Paul  Harris, 

at  $6 $2,400  00 

And  Cash  for  the  balance 2,400  00 


11 


81 


$  251      37 


2,000      00 


4,000      00 


1,187      50 


3,000      00 


3,000      00 


300      00 


4,800      00 


4,800      00 


(. 


■ii  i 

i 


WPfWiMff  ■!  ^■ilWB^^igWgTff"' 


K'% 


l|l 


if 


r 


10 


8 


8 


8 


8 


New  York,  March   27,  1850. 

Sold  to  Oliver  Otis  &  Co.  200  barrels  Flour  in  joint  ac- 
count with  P.  Harris,  at  $6,  as  per  Sales-Book 

Received  of  them  in  payment — 

Their  Draft  at  sight,  on  Wm.  Evans,  which  is  accepted' 

in  account,  for $260  00 

Their  Note,  No.  14,  at  sixty  days,  for 500  00 

And  Cash  for  the  balance 440  00 

28 ■■ 

Bartered  with  Haven  &  Smith  the  balance  of  Flour  in 
joint  account  with  Paul  Harris — 200  barrels,  at  $6.25.. 
Received  of  them  in  exchange — 

227  barrels  Mackerel,  at  $5.50 Si, 248  50 

And  Cash 1  50 

30 

Rendered   to   Paul  Harris   account-sales  of  Flour  in 
joint  account,  showing  the  following  result : — 
Our  Commission   on  total  Sales,  $7,850,   at 

2i-0|o ^196  25 

Storage  on  1,300  barrels  1  mo.,  at  3  cts 39  00 

Net  proceeds,  $7,614.75 — 

Of  which  P.  Harris's  half  is  due  May  3  |  50. .   3.807  37 

Our  half  net  proceeds  is $3,807  38 

Our  half  cost  is 3,187  50 

Our  net  gain  is 619  88 


April  1. 


Paid  Cash  as  follows  : — 

For  sundry  expenses  of  Store  last  month,  as  per  petty 

Cash-Book $162  00 

To  George  Loder,  for  three  months*  rent  of 
Warehouse 300  00 

^ 2 umi 

Received  per  Steamer  Crescent  City,  from  Lockhart  & 
Arrott,  New  Orleans,  pursuant  to  our  order,  in  full  for 
proceeds  of  our  Shipment  to  them  of  4th  Feb.,  Invoice 

of  230  bales  Cotton,  amounting  to $2,020  00 

Paid  Cash  for  Freight  and  expenses 300  00 


ft 


82 


$  1,200 


00 


1,200      00 


1,250     !  00 


1,250    ,00 


4,662 


462 


50 


00 


2,320      00 


8 


8 


8 


New  York,  April  3,  1850. 


Received  of  Irvine  Fisher,  to  be  sold  for  his  account, 
Invoice  of  300  bags  of  Laguayra  Coffee,  amounting 
to 


Sold  Fisher's  Coffee  as  follows : — 
To  S.  H.  Lovell,  at  4  months,  75  bags,  as  per  Sales- 
Book $1,350  00 

To  Oliver  Otis  &  Co.,  on  account,  50  bags,  as 

per  Sales-Book 810  00 


Renewed  C.  Bernard's  Note,  No.  1,  for  $2,000,  now  due. 
Received  his  Note,  No.  15,  for  same  amount,  and  Cash 
for  63  days'  interest 

8 


Sold  to  H.  Burrell  &  Co.,  for  cash,  100  bags  Fisher's 
Coffee,  as  per  Sales-Book,  $1,440 ;  which  amount  we 
have  paid  over  to  Irvine  Fisher  on  account 


-10 


Paid  Cash  to  sundry  persons  for  damages  found  in  Sales 
of  Fruit  on  account  of  Joseph  De  Nones,  amounting 

to $22  00 

Allowed  to  ourselves  for  defects,  &c.,  in  4,000 

jars  Olives,  taken  to  our  account  March  10  ..       40  00 


11 


Received  of  S.  H.  Lovell,  for  bill  of  6th  inst.,  his  Note, 

No.  16,  at  4  months,  for 

Discounted  the  above  Note  for  Irvine  Fisher,  and  paid 

him  in  Cash $1,322  33 

In  Discount,  allowed  us 27  67 


13 


Shipped  per  Brig  Pilot,  Milton,  and  consigned  to  Jo- 
seph Eaton,  Boston,  to  be  sold  for  our  account,  as  fol- 
lows : — 

115  bales  Louisiana  Cotton $2,160  00 

1000  jars  Olives,  at    .50 500  00 

50  bags  Coffee  of  Fisher's   Consignment 

taken  to  our  account 720  00 

Paid  Cash  for  Insurance  and  Shipping  ex- 
penses       120  00 


83 


1,350 


1,350 


11 


$3,375      00 


2,160      00 


21      00 


1,440      00 


62      00 


00 


00 


3,500 


00 


* 


H  (  !  I 

m 


If  i 


ill 


I 


12 


New   York,  April   14,  1850. 


10 


Received  of  Oliver  Otis  &  Co.,  for  sale  of  6th  inst,  as 

follows : — 

Their  order  at  sight  on  Irvine  Fisher,  which  is  accepted 

in  account,  for $310  00 

Cash,  amounting  to 500  00; 


15 


Delivered  to  Thomas  Blanchard,  on  account — 

Cash,  amounting  to $500  00 

3  bags  Fisher's  Coffee,  per  Sales-Book 43  20 

16 

Sold  to  Paul  Harris,  for  Cash,  the  balance  of  Fisher's 
Coffee — 22  bags,  as  per  Sales-Book 


10 


Rendered  to  Irvine  Fisher  account-sales  of  his  consign- 
ment of  Coffee,  showing  the  following  result : — 
Total   Sales,  $4,680 ;    on    which   our  Commission,  at 

2^o|^^is $117  00 

Storage,  Advertising,  and  Labor 18  00 

Net  proceeds 4,545  00 

18 


Sold  to  Thomas  Owen  &  Son,  150  tierces  Rice,  as  per 
Sales-Book 

Received  of  them  in  payment  as  follows  : — 

Irvine  Fisher's  Note  to  them,  No  17,  for $1,^00  00 

And  Cash,  amounting  to 637  50 


(( 


Delivered  to  Irvine  Fisher,  for  balance  of  his  account, 
as  follows : — 

His  Note,  No.  17,  due  20th  inst $1,200  00 

And  Cash,  amounting  to 245  00 

20  : 

Bought  at  auction  of  Wilmerdings  &  Mount,  in  joint 
account  with  Henry  Austin,  500  doz.  Madeira  Wine, 
at  $10 

Delivered  in  payment,  as  follows : — 

Our  Note,  No.  12,  at  4  months,  for $2,033  33 

C.  Bernard's  Note,  No.  9,  for $800  00 

J.  Truman's  Note,  No.  10,  for 500  00    1,300  00 

Amount  of  our  J  interest 3,333  33 

Henry  Austin  paid  W.  &  M.  for  his  ^,  amount- 
ing to  1,666  67 

84 


$  810 

00 

543 

20 

316 

80 

4,680 

00 

1,837 

50 

1,837 

50 

1,445 

00 

5,000 

00 

5,000 

00 

10 


10 


10 


10 


10 


11 


New  York,   April  21,   1850. 


Paid  Cash  as  follows  : — 

For  12  lottery  Tickets $120  00 

For  Discount  on  $475  uncurrent  money,  1 J  °lo  •       8  31 

24  


Sold  Brown  Brothers  &  Co.'s  Bill  of  Exchange  (No.  13) 
on  Brown,  Shipley,  &  Co.,  Liverpool,  drawn  for  061,000 
sterling $4,444  44 

Exchange,  at  8J  o|^  premium  ...      377  78    $4,822  22 


Brokerage,  J  ^\q 

Received  in  payment  as  follows  : — 

Our  Note,  No.  10,  in  favor  of  J.  R.  Dallett  &  Co.,  due 

May  1st,  for $2,190  00 

Interest  for  7  days  allowed  us 2  55 

Allowed  for  the  Note 2,187  45 

Cash  for  the  balance 2,622  71 

Premium  on  the  Bill,  as  above 377  78 

Paid  Brokerage,  "  12  06 


u 


Renewed  our  Note,  No.  9,  in  favor  of  C.  Bernard,  for 
$800,  by  our  Note  No.  13,  for  same  amount  and  time, 
and  paid  Cash  for  63  days'  interest  on  new  Note 


27 


Bought  at  auction  of  Gerard  &  Belts,  50  chests  Tea, 
amounting  to  $4,725 ;  and  transferred  the  same  to  J. 
Percival  for  3  ^\q  advance,  which  is  received  in  Cash. . 


«< 


.Q      Received  Cash  for  proceeds  of  tickets   in   Lottery, 
bought  on  21st  inst 


41 


Received  Cash  enclosed  in  an  anonymous  letter  ad- 
dressed to  us 

28  


Received  per  Schooner  Josephine,  Whipple,  from  H.  B. 
Walker  &  Co.,  Port  au  Prince,  an  invoice  of  37  tons 
St.  Domingo  Hides,  being  net  proceeds  of  our  Consign- 
ment to  them  of  Feb.  28,  account-sales  now  received, 

amounting  to $6,000  00 

Value  of  the  Freight  per  our  Schooner 200  00 


85 


141 


13 


128      31 


530 


12  06         4,810      16 


4,810      16 


365      72 


8    .  40 


75 


1,700      00 


00 


6,200    jOO 

! 


M 


\^' 


14 


11 


11 


11 


11 


11 


11 


New  York,  April  28,  1850. 


Received  per  Schooner  Josephine,  Whipple,  consigned 
to  us  by  H.  B.  Walker  &  Co.,  Port  au  Prince,  to  be  sold 
for  their  account,  an  invoice  of  20,000  feet  Mahogany, 
amounting  to  $2,400  ;  which  we  have  taken  to  our  ac- 
count at  the  market  price,  15  cts.  per  fV $3,000  00 

Charges : — 

Freight  per  our  Schooner $125  00 

Expenses  paid  in  Cash 75  00 

Our  Commission  on  $3,000,  at  5  ^Iq    150  00       350  00 


Net  proceeds  due  H.  B.  Walker  &  Co 

29  

Received  Cash  of  Capt.  Whipple  for  freight  per  Schr. 
Josephine,  on  her  voyage  to  Port  au  Prince 

30  


Paid  Cash  for  sundry  expenses  of  Store  this  month,  as 
per  petty  Cash-Book 


<< 


Received    Cash   of  Harmony's   Nephews  Sc  Co.,  for 
amount  of  Draft  on  them  at  sight,  remitted  to  us  by[| 
Joseph  Ruiz,  P.  Principe,  for  collection $5,000  00 


Our  Commission,  at  \ 


1    0 


0-  • 


{( 


Bought  for  Cash  of  A.  Belmont,  his  Bill  of  Exchange, 
No.  18,  at  sixty  days'  sight,  on  Rothschild  &  Co.,  Paris, 
per  order  of  H.  B.  Walker  &  Co.,  Port  au  Prince, 
to  whom  we  have  remitted  the  same : 
Bill  for  14,062.73  francs,  exchange  at  fr.  5.32  per  dollar, 

amounting  to $2,643  37 

Our  Commission  on  $2,650,  at  i  « |  q 6  63 


({ 


Bought  for  Cash  of  B.  Blanco,  his  Draft,  No.  19,  at  15 
days'  sight,  on  Francia  ^  Co.,  Cadiz,  and  remitted  the 
same  to  Joseph  De  Nones,  Cadiz,  for  balance  of  account 
due  him  in  Cadiz— $3,469.32. 

Face  of  the  Draft $3,454  80 

Exchange,  at  IJ  °|o  discount 51  82 

Paid  for  the  Draft 

Interest  for  25  days  in  our  favor  on  $3,469.32,  due  J. 
De  Nones  May  25  1 50 


86 


n 


2,650 


500 


200 


00 


00 


00 


12  50  I  i       4,987  !    50 


2,650 


00 


3,402  I    98 


14 


52 


11 


11 


12 


12 


12 


12 


12 


New  York,  April  30,  1850. 


Bought  for  Cash  of  Moses  Taylor  &  Co.,  their  Bill  of 
Exchange,  No.  20,  at  30  days'  sight,  on  Drake  Brothers 
&  Co.,  Havana,  on  account  of  Joseph  Ruiz,  Puerto 
Principe,  to  whom  we  have  remitted  the  same : 

Face  of  the  Bill $5,050  63 

Exchange,  at  11  o|o  discount,  favor  J.  Ruiz,        75  75 


Paid  for  the  Bill 4,974  88 

Our  Commission  on  $5,050.63,  at  J  o|^ 12  62 


« 


Bought  for  Cash  of  Jacob  Little  &  Co. — 

10,500  Spanish  Dollars $10,500  00 

78  75 


At  Premmm  of  f  o,q 


« 


Balances  of  Interest  in  favor  of  the  following,  as  per 
accounts-current  rendered  to  this  date : — 

Thomas  Blanchard,  partner $494  16 

C.  C.  Marsh,  "         297  69 


« 


Balance  of  Interest  in  our  favor,  as  per  account-current 
rendered  to  C.  Lawrence,  to  this  date 


<« 


Balance  of  Interest  in  favor  of  Paul  Harris,  as  per  ac- 
count-current rendered  him  to  this  date 


« 


CLOSING  ENTRIES. 

Profit  and  Loss  account  must  be  debited  for  the  follow- 
ing balances,  being  losses,  as  per  Balance-Sheet : — 

Store-Fixtures,  loss $  30  00 

Store-Expenses,  loss 662  76 

Discount  and  Interest,  loss 613  27 


« 


Profit  and  Loss  account  must  be  credited  for  the  follow- 
ing balances,  being  gains  as  per  Balance-Sheet : — 

Merchandise,       ^  gain $3,562  86 

Schooner  Josephine,  gain 874  00 

Commission,  gain 794  85 

Exchange,  gain 152  70 

Shipment  to  New  Orleans,    gain 197  73 

Shipment  to  P.  au  Prince,    gain 1,890  44 


791 


15 


$  4,987      50 


10,578     '  75 


85 


07 


67 


1,306      03 


7,472      63 


11 


it! 


n 


.:.! 


16 


12 


12 


13 


13 


New  York,   April  30,  1850. 


The  net  gain  accruing  from  the  business  the  last  four 
months,  as  appears  by  the  Profit  and  Loss  account, 
is  $8,546.48— 

Of  which  Thomas  Blanchard's  half  is $4,273  24 

Of  which  C.  C.  Marsh's  half  is 4,273  24 

«  

Balances  of  Property  and  Debts  in  our  favor,  as  per 
Balance-Sheet,  as  follows  :— 

Cash,  balance  on  hand $26,274  07 

Merchandise,  balance  on  hand 15,000  00 

Bills  Receivable,      balance  on  hand 6,998  35 

Store-Fixtures,         valued  at 270  00 

Schr.  Josephine,        first  cost 5,000  00 

Charles  Lawrence,  balance  in  our  favor 167  07 

S.  H.  Lovell,  balance  in  our  favor  . . .        395  00 

Walter  Howard,      balance  in  our  favor  . . .        307  62 

Shipment  to  Boston,  no  account-sales ....     3,500  00 

Comp.  2  Merchandise,  our  §  on  hand 3,333  33 

- '  ((  

Balances  in  favor  of  Sundries,  as  per  Balance-Sheet  :— 

Bills  Payable,    Notes  outstanding $4,137  11 

Paul  Harris,      balance  in  his  favor 4,988  20 

<(  _ 

The  Balance   recount  of  April  30,   1850,  shows  the 
amount  of  our  net  capital — 852,120.13;  of  which — 
Thomas  Blanchard's  share,  as  appears  by  his  account, 

is $31,144  20 

C.  C.  Marsh's  share,  as  appears  by  his  ac- 
count, is 20,975  93 


I! 


$8,546      4S 


61,245 


44 


9,125 


31 


52,120      13 


.t 


14 


14 


14 


14 


14 


14 


New   York,   May    10,   1850. 


17 


Amount  of  Salaries  due  the  following  Clerks  in  our 
employment : — 

C.  J.  Martin,  from  January  5  to  5th  inst $300  00 

John  Sims,      from  February  1  to  1st  inst 200  00 


$  500      00 


15 


Delivered   to  Paul  Harris  our  Note,  No.  16,  at  three     I 
months,   dated    1st   inst.,    for   part   of  balance   of  ac- 
count   $1,988  20 

Interest  added,  93  days 30  81 

16     r 


BtMight  of  Strang,  Adriance,  &  Co.,   50  shares  Erie 

Railroad  Stock,  at  $80  per  share $4,000  00 

Delivered  to  them  in  payment,  our  Draft  on 
Joseph  Eaton  &  Co.,  Boston,  at  three  days* 

sight,  for 4,020  10 

Exchange  allowed,  at  ^  ^L  discount 


20  10 


18 


Received  from  Joseph  Eaton  &  Co.,  Boston,  account- 
sales  of  our  Consignment  to  them  of  April  13th :  Net 
proceeds  


<< 


Received  from  Joseph  Eaton  &  Co.,  Boston,  account- 
current  showing  a  balance  of  Interest   in  their  favor 

of $  25  00 

Also,  their  Draft,  No.  21,  at  60  days,  on  Eagle 

&  Hazard,  accepted,  for  balance  due  us 554  90 

20 ~" 


Delivered  our  Note,  No.  17,  at  seven  months,  to  the 
Atlantic  Mutual  Insurance  Co.,  for  2  °|q  premium  on   !!" 
$20,000  in  open  policy 


23 


Shipped  per  Steamer  Panama,  Bailey,  consigned  to 
Simmons,  Hutchinson,  &  Co.,  San  Francisco,  to  be  sold 
for  the  joint  account  of  Henry  Austin  and  ourselves,  as 
follows : — 

100  boxes  refined  Sugar $1,150  00 

80  M.  Havana  Segars 1,440  00 

10,500  Spanish  Dollars $10,500  00 

At  1 ''io  premium 105  00    10,605  00 


11 


12 


Forward 13,195  00 


89 


i; 


2,019      0] 


4,000       00 


4,600       00 


579       90 


401       25 


11 


!i; 


lilt 


iiti 


18 


New  York,   May   23,   1850. 


14 


Brought S13,105  00 

Paid  Cash  for  Shipping  expenses 125  00 

Insured  at  the  Athmtic  Mutual  Insurance  Co., 

$14,654,  at  2  o|o  prem.  entered  on  our  Policy      293  04     $13,G13      04 

Of  which  our  half  is 6,80G  52 

Of  which  Henry  Austin's  half  is 6,806  52        13,613      04 


30 


15 


Bought  Merchandise  during  this  month,  as  per  Invoice- 
Book,  as  follows : — 

On  our  Notes,  viz. : — 


No.  14  to  T.  Owen  &  Son 4th,  S300  00 

"    15  to         "             "    6th,  200  00 

"  18  to  Trujillo  &  Barreiras.  .25th,  320  00 
"    19  to  Harmony's  Nephews 

&  Co 26th,  630  00 

"    20   to    Spofford,    Tileston, 

&  Co 28th,  270  00  1,720  00 


»• 


On  Account — 

Of  Henry  Austin 5th,  $200  00 

16th,    100  00  $300  00 

Of  James  Truman 10th, 212  00 

I  Of  Edward  G.  Fail  &  Co 13th, 375  00 

i  Of  William  Evans 18th,    1 10  00 

"      25th,    175  00 

I    "         "  "      30th,    135  00     420  00 


Of  Barclay  &  Livingston 22d 550  00 


00 


3,577      00 


15 


15 


New   York,   May   30,    1850. 


19 


II 


Sold  Merchandise  during  this  month,  as  per  Sales-Book, 
as  follows : — 

For  Notes,  viz. : — 

No.  22,  on  A.  G.  Beck 15th,  $352  00 

"    23,  on  W.  F.  Mott,  Jr 20th,    415  00 

♦*    24,  on  A.  Aranguran 27th,    611  00  1,378  00 

On  Account — 


To  S.  H.  Lovell 12th,  $310  00 

"       17th,    190  00  $500  00 


it 


To  Paul  Harris 18th,  $150  00 

«      28th,    150  00 

"       30th,    255  00  $555  00 


it 


To  Oliver  Otis  &  Co 20th, 562  50 

"    Henry  Austin 22d, 337  50 

"    Barclay  &  Livingston 29th, 175  00      $  3,508 


00 


(I 


Received  Cash  during  this  month,  as  per  Cash-Book,  as 
follows : — 

For  Merchandise,   amount  of  cash   sales — 

this  month $1,266  00 

For  Notes  due   and  discounted   this   month, 

viz.:— No.  12 for  $707  35 

"     14 for    500  001,207  35 

10  50 
350  00 


For  Discount  and  Interest,  amount 

Of  Oliver  Otis  &  Co 23d,  $200  00 

30th,    150  00 


It 


<( 


Of  Henry  Austin 28th, 

Of  Charles  Lawrence 28th 

Of  S.  H.  Lovell 30th 


150  00 
167  07 
300  00 


3,450   92 


91 


■; 


■Vi' 


\i\ 


f 


IMI 


fi.li 


j:   t 


It'  i 


i5  S 


1'^" 


20 


15 


New   York,   May   30,   1850. 

■— —I     -l|^■      ■!      !■        .11  M  ■■■■lUilM ■■■■I.    ■  ■  .1  ■         ■  Ml..-      ..MM  W     .^  ^  ■!  I  ■_  11        I      I  M.l—M-^ ■■.!■        >^l      «         ■  ■!     ^  !■  I.I—       ■■»■ 

Paid  Cash  during  this  month,  as  per  Cash-Book,   as 
follows : — 

For  Merchandise,  cash  purchases  this  month..  $610  50 
For  our  Notes,  due  this  month,  viz. — 

No.  14 for  $300  00 

"     15 for    200  00     500  00 

For  Discount  and  Interest,  amount 12  75 

For  Store-Expenses,             amount 75  95 

To  Thomas  Blanchard 15th,  $  98  23 

30th,     100  00  198  23 

To  Paul  Harris,  his  Draft  at  sight — 

5th,  for  $2,500  00 
"      "         "        10th,    500  003,000  00 

To  C.  C.  Marsh 15th,    200  00 

30th,     100  00     300  00 

To  William  Evans 12th 200  00 

•    C.  J.  Martin IGth 150  00 

*«  John  Sims 16th 100  00 

« 

An  error  occurred  in  a  journal  entry  of  April  30  (page 
12),  in  which  Paul  Harris  was  charged  for  a  balance 
of  interest  of  $6.67  when  he  should  have  been  credited 


y 


$5,147      43 


13      34 


]H 


9ii 


M 


1 1-  i 


;i 


ili 


NOTE. 

In  this  book  consists  the  science  of  book-keeping — its  entries  are  composed 
from  those  of  the  day-book,  and  embrace  only  our  debtors  and  creditors,  ar- 
ranged to  facilitate  our  posting  or  transferring  them  to  the  Icger.  This  method, 
having  the  day-book  and  journal  entries  separate,  relieves  the  book-keeper  of 
a  double  task  ;  for  when  they  are  united,  he  has  not  only  to  point  out  the 
debtors  and  creditors  of  a  transaction,  but  has  also,  and  at  the  same  moment, 
to  state  all  the  circumstances,  which  must  of  necessity  be  done  in  broken  sen- 
tences. But  by  this  plan  or  arrangement  the  book-keeper  may  give  a  pure  and 
simple  relation  of  any  transaction  and  leave  the  debtors  and  creditors  for  a 
separate  entry  and  futurq  consideration. 

In  examining  an  account  in  the  leger,  we  need  not  go  through  this  book  to 
the  day-book,  but  we  may  refer,  for  any  explanation?,  from  the  leger  (by  the 
dates),  directly  to  the  day-book  entries 


2 

5 

4 

10 

1 
1 


G 
1 
1 


6 
2 


10 
4 


5 

4 


2 
4 


11 
4 


4 

11 


4 
2 


4 
6 


New   York,   January   5,   1850. 


1 


Sundries  Dr.  To  Sundries. 

Cash $38,000  00 

Bills  Receivable 4,670  00 

Merchandise 3,125  Or* 

Charles  Lawrence 140  00    ,  $  15,935 


To  Thomas  Blanchard 28,000  00 

"    C.C.  Marsh 17,935  00        45,935 


00 


00 


« 


Sundries  Dr.       To  Bills  Payable. 

Thomas  Blanchard $1,080  00 

C.  C.  Marsh 1,230  00 


2,310      00 


Store-Fixtures 

To  Cash 


Dr. 


8 


Paul  Harris                          Dr. 
To  Merchandise 


10 


Bills  Receivable  Dr. 

To  Merchandise  .... 


12 


Cash                                    Dr. 
To  Merchandise 


13 


Olive:  Otis  &  Co.               Dr. 
To  Merchandise 


14 


Merchandise  Dr. 

To  Henry  Austin  . . . 


« 


Merchandise 

To  Cash, 


Dr. 


16 


300       00 


325      00 


500      00 


125      00 


2,000      00 


1,500       00 


800       00 


Merchandise  Dr. 

To  Bills  Payable 2,100 


05 


!     ■"  '  ■ 


I 


Hi  a. 


12 


11 
5 
2 


2 
4 


5 

10 


11 

c 


4 

12 

2 


4 
11 
13 


5 
2 

7 


New  York,  January   16,   1850. 


4       Merchandise  Dr.  To  Sundries. 

2  To  Cash $2,000  00 

4  "    Merchandise 1,200  00    ! 


17 


James  Truman 
To  Cash 


Dr. 


$  3,200    !  00 


19 


Sundries  Dr.     To  Oliver  Otis  &  Co. 

Bills  Receivable Sl,000  00 

Cash 1,000  00 


Cash 


20 
Dr. 


To  Merchandise 


21 


Bills  Receivable                    Dr. 
To  Paul  Harris 


2^ 


Cash  Dr. 

To  James  Truman  . . . 


(( 


Henry  Austin                        Dr. 
To  Bills  Payable 

24  - 


Sundries  Dr.  To  Merchandise. 

S.  H.  Lovell $250  00 

Cash 160  00 

2G 

Sundries  Dr.  To  Merchandise. 

Oliver  Otis  &  Co $200  00 

William  Blakeley 200  00 


28 


Bills  Receivable  Dr.       •         To  Sundries. 

To  Cash $2,000  00 

*♦    Interest .' 12100 


96 


1,000       00 


2,000      00 


250      00 


325       00 


1,000      00 


1,500      00 


410      00 


400      00 


2,121       00 


New   York,  January   30,  1850. 


3 


6 
it 


Bills  Payable 

To  Cash 


Dr. 


February  2. 


G 
4 
2 

7 


8 
2 


IG 
4 
2 


5 

4 


13 
2 

S 


4 

10 
5 
2 


Bills  Payable  Dr.  To  Sundries. 

To  Merchandise $550  00 

"   Cash 525  32 

"   Discount 4  68 


I 
$  1,230    i  00 

I 

I 


« 


Store-Expenses 
To  Cash 


Dr. 


Shipment  to  New  Orleans     Dr.  To  Sundries. 

To  Merchandise $1,722  22 

"   Cash 100  00 


Bills  Receivable                   Dr. 
To  Merchandise 


Sundries  Dr.     To  William  Blakeley. 

Cash $100  00 

Profit  and  Loss 100  00 


12 


Merchandise  Dr.  To  Sundries. 

To  Charles  Lavirrence $   140  00 

"   Bills  Receivable 1,000  00 

«  Cash 100  00 


13 
5 

4 

13 

G    I 

2 

1 

William  Blakeley  Dr. 

To  Bills  Receivable  . 


13 


Merchandise  Dr.  To  Sundries. 

To  Walter  Howard $4,888  89 

"   Bills  Payable 1,222  22 

«  Cash 422  00 


13 


97 


1,080    ;  00 


Go       00 


1,822      22 


320       00 


200    '  00 


l,Ii»40      00 


500       00 


C,533      11 


til 


Hi 


i 


H 


it  'i 


fti" 


N' 


New   York,  February   13,  1850. 


5 

s 

I 

!l3 

I    7 


1.3 

G 


Sundries  Dr.  To  Sundries. 

Bills  Receivable $251  37 

Profit  and  Loss 250  00    "  $     501       37 


To  William  Blakeley 500  00 

"   Interest 1  37 


■\\ 


I 
501      37 


16 


G 
4 


113 

'    4 

2 

9 


i     4 
14 


4 

4 


5 


G 


5 

2 

12 


5 
4 


5 
.    2 

i  "^ 
I 


Walter  Howard                   Dr. 
To  Bills  Payable 

17 

Bills  Payable                        Dr. 
To  Merchandise 


4,444      44 


1,500      00 


20 


Walter  Howard  Dr.  To  Sundries. 

To  Merchandise $2,730  00 

Cash 160  15 

84  14 


(( 


"  Commission 


« 


Merchandise  Dr. 

To  William  Evans  . . . 


2,974      29 


1,2C0      00 


Merchandise 

To  Merchandise 


21 
Dr. 


1,530      00 


<i 


Bills  Receivable                    Dr. 
To  Bills  Payable 

23    - 


Sundries  Dr.         To  Merchandise. 

Bills  Receivable $  500  00 

Cash 120  00 

.Tames  Truman 1,000  00 


800      00 


1,C20 


-24 


Bills  Receivable                   Dr 
To  Merchandise 


00 


2,000     *00 


t€ 


Sundries  Dr.     To  Bills  Receivable. 

Cash $1,9G9  00 

Discount 31  00 


2,000      00 


.1 


98 


New  York,   February  25,  1850. 


7   ! 
13   ' 
9 
2 


14 
12 


1 
Schooner  Josephine  Dr.  To  Sundries,     i 

To  Walter  Howard $2,222  22 

"  Exchange 177  73    i 

"  Cash 2,G00  00      $5,000 


00 


26 


William  Evans  Dr. 

To  James  Truman  . . . 


7 
2 


16 
4 
G 

10 
7 


16 
G 
2 


7 
2 


Schooner  Josephine 
To  Cash 


it 


Dr. 


il 


1,000    00 


155       00 


27 


Shipment  to  Port  au  Prince    Dr.  To  Sundries. 

To  Merchandise $1,200  00 

"  Bills  Payable 2,190  00 

"   Charles  Lawrence 288  00 

**   Schooner  Josephine 230  00 


28 


Shipment  to  Port  au  Prince    Dr.  To  Sundries. 

To  Bills  Payable $  81  5G 

"  Cash 120  00 


it 


Schooner  Josephine 
To  Cash... 


Dr. 


March  2. 


4 

11 

10 


Sundries  Dr.         To  Merchandise. 

Oliver  Otis  &  Co ^500  00 

Charles  Lawrence 238  00 


u 


8      Store-Expenses 
2  To  Cash 


Di 


;  t 

!  t 
I 


99 


2G 


45 


3,908      00 


201       56 


00 


788      00 


03 


i 

I  lit 


»! 


I 


ml 
ill 


■It  I 


'•Mi«H««MMMiaAiii 


Hi 


I 


•  f 


1  u 


I  ''I 

p 


ii 


iiii 


6 


New   York,   March   3,   1850. 


I 

17   j   De  Nones'  Consignment     Dr. 
2  To  Cash 


<( 


2 
17 


17 
10 

2 


Cash  Dr. 

To  De  Nones*  Consignment, 

4  _ 


Sundries  Dr.     To  De  Nones'  Consign't. 

Charles  Lawrence $175  00  i 

Cash 300  00 


5 


6 


Cash  Dr. 

To  Bills  Receivable . . 


ii 


11 

7 


17 

2 

10 


12 

4 

17 


6 


2 

12 


2 
17 


4 
17 


Bills  Receivable  Dr.  To  Sundries. 

To  Oliver  Otis  &  Co $700  00 

"    Interest 7  35 


S.  H.  Lovell  Dr.  To  Sundries. 

To  Merchandise $245  00 

"   De  Nones*  Consignment 150  00 


t< 


Bill?  Payable 

To  Cash 


Dr. 


Ii 


Cash                                       Dr. 
ToS.H.  Lovell 


10 


;  Cash  Dr. 

To  De  Nones*  Consignment. 


Merchandise  Dr. 

To  De  Nones*  Consignment. 


$     460 


De  Nones'  Consignment     Dr.  To  Sundries. 

To  Cash $45  00  ! 

*•   Charles  Lawrence 10  00   ! 


100 


456 


00 


00 


475      00 


2,G70      00 


707      35 


55      00 


395      00 


4,444 


44 


250      00 


1,233      27 


2,000      00 


2 
5 
4 


14 


16 


5 


2 
10 


10 


New   York,   March    12,   1850. 


^^sh  .        ^^'  To  Sundries. 

To  Bills  Receivable $325  00 

*'  Merchandise 525  00      $     850      00 


14 


17      De  Nones'  Consignment     Dr.  To  Sundries. 

9  To  Commission $  215  71 

®   ■  "  Store-Expenses 52  24 

"  Joseph  De  Nones 3,531  32  3,799      27 


16 


14       Lockhart  &  Arrott 


Dr. 


To  Shipment  to  New  Orleans 2,020      00 


tt 


2      Cash  Dr. 

To  Bills  Receivable . . 


18 


251       37 


Cash                                    Dr. 
To  Paul  Harris 


2,000      00 


-  20 


2      Sundries  Dr.  To  Cash. 

18      Company  1  Merchandise $2,000  00 

10      Paul  Harris 2',000  00 


4,000      00 


21 


18      Company  1  Merchandise     Dr. 


To  Paul  Harris, 


23 


-Sundries                              Dr.              To  Sundries. 
6      Bills  Payable $2,100  00 

909  10 


Cash. 


1,187      50 


3,009    :  10 


18 
7 


To  Company  1  Merchandise 3,000  00 

"    Interest 9  jq 


1      C.  C.  Marsh 


*i 


To  Cash 


25  

Dr. 


3,009       10 

I 


300      00 


101 


ii! 


ii 


I 

«  J 


i  if 


i 


8 


IS 
2 


18 

'  14 

I     _ 

2 


18 
9 

8 

10 

8 


8 
2 


4 

14 

2 


17 
12 
11 


New  York,    March   26,   1850. 


} 

-  Sundries  Dr.  To  Sundries. 

5      Bills  Receivable S4,444  44 

9      Exchange 355  66      $4,800      00 


To  Company  1  Merchandise 2,400  00 

"   Cash 2,400  00 


27 


Sundries  Dr.     To  Comp.  1  Merchandise. 

William  Evans $260  00 

Bills  Receivable />00  00 

Cash 440  00 


28 


18       Sundries  Dr.     To  Comp.  1  Merchandise. 

4    J  Merchandise $1,248  50 

2      Cash 150 


30 


Company  1  Merchandise     Dr.  To  Sundries. 

To  Commission $  196  25 

"   Store-Expenses 39  00 

"   Paul  Harris 3,807  37 

"  Profit  and  Loss 619  88 


April   1. 


Store-Expenses  Dr. 

To  Cash 

2 ^ 

Merchandise  Dr.  To  Sundries. 

To  Lfjckhart  &  Arrott $2,020  00 

"  Cash 300  00 

G  

• 

Sundries  Dr.     To  Fisher's  Consigii't. 

S.  H.  Lovell $1,350  00 

Oliver  Otis  &  Co 810  00 


102 


4,800       00 


1,200      00 


1,250      00 


4,662    :  50 


402    ,  00 


2,320       00 


2,160      00 


2 

7 


15 
17 


14 
2 
4 


5 
15 

12 
2 
7 


16 
4 

17 
2 


11 
15 


New   York,  April  7,  1850. 


Cash 


Dr. 


To  Interest 


8 


Irvine  Fisher 


Dr. 


To  Fisher's  Consignment. 


™-10 


Joseph  Dc  Nones  Dr.  To  Sundries. 

To  Cash $  22  00 

"  Merchandise 40  00 


11 


Sundries  Dr.  To  Sundries. 

Bills  Receivable $1,350  00 

Irvine  Fisher 1,350  00 


To  S.  H.  Lovell 1,350  00 

Cash 1,322  33 


*i 


"  Discount 


27  67 


13 


Shipment  to  Boston  Dr.  To  Sundries. 

To  Merchandise $2,660  00 

"  Fisher's  Consignment 720  00 

"  Cash 120  00 


14 


Sundries  '  Dr.     To  Oliver  Otis  &  Co. 

Irvine  Fisher $310  00 

Cash 500  00 


1 

2 

17 


2 
17 


17 
9 
8 

16 


15 


Thomas  Blanchard  Dr.  To  Sundries. 

To  Cash $500  00 

"  Fisher's  Consignment 43  20 

16 ZZZZ 


Cash  Dr. 

To  Fisher's  Consignment. 


<< 


Fisher's  Consignment  Dr.  To  Sundries. 

To  Commission $  117  00 

"   Store-Expenses 18  00 

"   Irvine  Fisher 4,545  00 


103 


il 


! 

$     21    '  00 


1,440      00 


62   '  00 


2,700       00 


2,700      00 


1       • 
3,500      00 


810      00 


543 


316 


20 


80 


4,680  .  OC 


*i 


■fc 


ifr"" 


if  ii 


IS 


m 


10 


4 
5 
2 


i     o 


]S 
(5 
o 


•1 


s 

0 


6 
3 

;1 
•    9 

7 


3 


3 
4 


3 

8 


New  York,    April   18,   1850. 


Sundries  Dr.         To  Merchandise. 

Bills  Receivable $1,200  00 

Cash 637  50       $  1.837 


8 


4 
16 
7 
1  i 


«< 


Irvine  Fisher  Dr.  To  Sundries. 

To  Bills  Receivable $1,200  00 

Cash 245  00 


(( 


20 


Company  2  Merchandise     Dr.  To  Sundries. 

To  Bills  Payable $2,033  33 

"   Bills.'Receivable 1,300  00 


21 


Sundries  •  Dr.  To  Cash. 

Profit  and  Loss  .C j.  ...^ $120  00 

Exchange s  31 


24 


Sundries  Pr.     .         To  Sundries. 

Bills  Payable ' $2,190  00 

Cash , 2,622  71 


To  Bills  Receivable 4,444  44 

"   Exchange 3GS  73 


"   Interest 


2  55 


« 


'     7      Interest 


To  Cash 


Dr. 


27 


Cash  Dr. 

To  Merchandise  .... 


tt 


Cash  Dr. 

To  Profit  and  Loss. . 


li 


Cash  Dr'. 

To  Profit  and  Loss  . . 


28 


Merchandise                          Dr.                To  Sundries. 
To  Shipment  to  Port'au  Prince  .  .$6,000  00 
"   Schooner  Josephine 200  00 


5C 


1,445      00 


3000 
,000 


33 


128 


4,812      71 

f 


4.812      71 


40 


141       75 


1,700       00 


530       00 


104 


6,200      00 

i 


New  York,  April  28,  1850. 


4 

15 
7 
3 
9 


3 

7 


8 
3 


Merchandise  ^  Dr.  To  Sundries. 

1  o  H   B.  Walker  &  Co $2,650  00 

**  fcchooner  Josephine 125  00 

^ash y^    QQ 

"Commission 150  00      $3,000     !  00 


29 


3 

15 
9 


15 
3 

9 


14 
3 
9 
7 


15 
3 
9 


Cash  Dr. 

To  Schooner  Josephine 

-30    — 

Store-Expenses                     Dr. 
To  Cash 


500     ;  00 


« 


Cash 


Ut,  ^             To  Sundries 
To  Joseph  Ruiz.  .i^..M  li  0,97  /^'n 

Commissioa ^       12*50 


200 


00 


(( 


^r 


H.  B.  Walker  &  Co.  ^r.   ^         To  ^Sundries. 

10  Cash  . . . . . .  .^, ^2,643  37 

Commission /?.  /-o 


5>D00 


it 


6*63 


2,650 


00 


00 


—  — -               .Dr. 
ToCash jji -^ 


Joseph  De  Nones  ".Dr.  .    To  Sundfies. 


T.     ,  .  i S3,402  98 

"  Exchange../. >.......        51  82 

"    Interest 14  ''52 


3,469      32 


«« 


9 
3 

7 
1 

1 

10 
7 

• 

I  Dr. 


Joseph  Ruiz  ,  i^r.  To  Sundries. 

u   n        '•"' •^- -'-^4,974  88 

Commission X2  'Q2 


4,987     i  50 


(( 


Exchange 

ToCash 


Dr. 


M 


78 


Interest 


T^  Tu  r>i  '   P^'T  '  ^^  Sundries. 

«   n  Til  ^^f  "Chard $494  iq 

C  C  Marsh 297  69 


75 


M         V 


Charles  Lawrence 
To  Interest, 


Dr^ 


14 


105 


791      85 


07 


LI 


fji 


12 


New  York,   April  30,   1850. 


10 
7 


8 
6 

7 
8 


8 
4 
7 
9 
9 
16 
16 


8 
1 
1 


19 

o 
o 

4 

5 

6 

7 

10 

12 

13 

16 

18 


19 

6 

10 


19 
1 


Paul  Harris 

To  Interest. 


Dr. 


ti 


I  Profit  and  Loss  Dr.  To  Sundries. 

To  Store-Fixtures $  30  00 

"   Discount  and  Interest 613  27 

Store-Expenses 662  76 


4( 


it 


Sund 


ries 


Dr.     To  Profit  and  Loss. 


Merchandise $3,562 

Schooner  Josephine §74 

Commission 794 


Exchange 


152 


Shipment  to  New  Orleans 197 

Shipment  to  Port  au  Prince 1,890 


86 
00 
85 
70 
78 
44 


it 


Profit  and  Loss  Dr.  To  Sundries. 

To  Thomas  Blanchard $4,273  24 

"  C.  C.  Marsh 4,273  24 


<< 


Balances  of  April  30,  1850     Dr.  To  Sundries. 

To  Cash $26,274  07 

"   Merchandise 15,000  00 

Bills  Receivable 6,998  35 

Store-Fixtures 270  00 

Schooner  Josephine 5,000  00 

Charles  Lawrence 167  07 

S.  H.  Lovell 395  00 

Walter  Howard 307  62 

Shipment  to  Boston 3,500  00 

Company  2  Merchandise 3,333  33 


<( 


<» 


it 


It 


it 


tt 


it 


tt 


I 


a 


Sundries  Dr.     To  Balance  of  April  30, 1850. 

Bills  Payable $4,137  11 

Paul  Harris 4^938  20 


u 


s 


9,125 


Sundries  Dr.     To  Balance  of  April  30, 1850. 

Thomas  Blanchard $31,144  20* 

C.  C.  Marsh 2o',975  93       52,120 


67 


1,306    ,  03 


7,472      63 


8,546      48 


61,245   '  44 


31 


13 


106 


8 
20 

20 


6 

10 
7 


20 

21 

9 


20 
16 


20 
7 
5 


21 
6 


21 

11 

4 

3 

21 

9 


4 
6 
11 
12 
18 
14 
19 


New  York,  May   10,   1850. 


13 


Store-Experises  Dr.  To  Sundries. 

lo  C.J.  Martm $300  00 

"  John  Sims 2OO  00 


15 


Sundnes  Dr.       To  Bills  Payable 

Jraul  Harris ^1  qqo  c 

Interest  


•II 


$1,988  20 
30  81 


16 


I""  S^  M      .  .,  ^^-     To  Joseph  Eaton  &  Co. 

l.rie  Railroad  Stock ^4,000  00 

-Exchange ^0  10 


(■ 


18 
Dr. 


Joseph  Eaton  &  Co. 

To  Shipment  to  Boston 4  qqq 


« 


Sundries  Dr.     To  Joseph  Eaton  &  Co. 

Interest ^25  OO 

Bills  Receivable 554  qq 


*€ 


Insurance 


To  Bills  Payable, 


Dr. 


23    - 


Sundries  Dr.  To  Sundries. 

Shipment  to  San  Francisco  (joint) $6,806  52 

Henry  Austin ^§06  52 

To  Merchandise 2,590  00 

S^^^ 10,625  00 

Exchange io5  00 

Insurance 293  04 

30 


tt 


tt 


It 


Merchandise                         Dr.               To  Sundries 
To  Bills  Payable $1,720  00 

300  00 
212  00 
375  00 
420  00 
550  00 


Henry  Austin I6th, 

"  James  Truman lOth 

*'  E.G.  Fail  &  Co isth] 

"   William  Evans 30th,' 

"  Barclay  &  Livingston  ...22d,' 


3,577 


$     500   00 


2,019  iOl 


4,020  '10 


00 


579   90 


401  25 


13,613   04 


13,613   04 


00 


107 


n- 


u 


New   York,  May   30,  1850. 


4 
5 
12 
10 
11 
11 
19 


3 

4 

5 

7 

11 

11 

10 

12 


3 
4 
6 
7 
S 
1 
10 

1 

14 

20 
20 


7 
10 


InifTJ"'    •     ^.l                     ^^'-         To  Merchandise. 
Bills  Receivable g^^g^g  oo 

500  00 
30th,  555  00 
562  50 
337  50 
175  00 


S.  H.  Lovell '  *  17^'}^* 

Paul  Harris oofU  * 

Oliver  Otis  &co....;:;::;;:;;;;;*^olh 

Henry  Austin ! ".  *.  .22(1  ' 

Barclay  &  Livingston 29th 


<< 


_( 


Cash 


•p^  AT      T-      T         ■'^^*  To  Sundries. 

\?  ^^r^^"^^^^ S1.266  00 

-tJills  Keceivable 1,207  35 

Discount  and  Interest '  '  10  50 

Oliver  Otis  &  Co 36th,  350  00 

Henry  Austin 2Sth,  150  00 

Charles  Lawrence 28th,  167  07 

b.  H.  Lovell 30th,  3OO  00 


(( 


(( 


(< 


<( 


ti 


Sundries  Tiy  t*     >-,    , 

Merchandise _  l""  nn\ 

Bills  Payable y,/,: 500  00 

Discount  and  Interest 12  7'' 

Store-Expenses 75  95 

Thomas  Blanchard ::;:;:  30th,      198  23 

Paul  Harris .q.'  ^  ^^^^  ^^ 

C.  C.  Marsh i^  !        inn   nn 

iTT-iT        -r.  oOth,      300  00 

W>lham  Evans ig,,,, 

C  J  Martm jg^^ 

•^°''"^™^ • 16th,      100  00 


(( 


Interest 


To  Paul  Harris 


Dr. 


108 


w 


3,508  I   00 


3,450 


92 


5,147 


13 


43 


34 


r*  * 


III 


'I 


/ 


v^ 


NOTE. 

This  is  the  Book  of  Accounts  ;  the  book  that  shows  the  results  of  all  our 
mercantile  transactions,  condensed  and  brought  together  under  their  different 
heads.  On  one  folio  we  raay  see  what  our  merchandise  cost  and  what  it  sold 
for  ;  on  another,  the  amount  of  our  notes  issued  and  redeemed ;  on  another, 
the  amounts  a  person  owes  us  and  those  we  owe  him.  Thus  we  raay  turn 
over  its  pages  and  see  at  one  view  the  amounts  that  all  persons,  properties,  or 
objects,  and  branches  of  our  business,  owe  to  us  or  have  cost  us,  and  all  that 
we  owe  to  them  or  that  they  have  produced  us. 

The  balance  sheet  (designed  to  show  the  state  of  our  affairs),  exhibiting  our 
assets  and  liabilities,  our  gains  and  losses,  and  our  net  capital,  is  made  out 
from  this  book. 

The  trial  balance  (a  paper  made  to  prove  the  postings,  additions,  and  subtrac- 
tions in  this  book),  is  made  out  from  this  book,  monthly  or  quarterly. 

The  entries  in  this  book  are  brought  froih  the  journal,  daily,  weekly,  or 
monthly,  as  occasions  require 

Accounts-current  are  made  from  this  book  with  reference  from  the  accounts 
(by  dates)  direct  to  the  day-book  for  explanations. 


I 


Index. 


A. 

Austin,  Henry 11 


B 

Bills  Receivable 5 

Blanchard,  Thomas 1 

Bills  Payable 6 

Blakeley,  William 13 

Balance  of  April  30,  1850 19 

Barclay  &  Livingston 19 


Cash 3, 2 

Commission 9 

Company  1  Merchandise 18 

Company  2  Merchandise 18 


I) 

Discount  and  Interest 7 

De  Nones'  Consignment 17 

De  Nones,  Joseph 14 


111 


Evans,  William 14 

Exchange 9 

Erie  Railroad  Stock 21 

Eaton  &  Co.,  Joseph 20 


Fisher's  Consignment 17    ' 

Fisher,  Irvine 15    > 

Fail  &  Co.,  E.  G 18 


G. 


H 

Harris,  Paul 10 

Howard,  Walter 13 


Index. 


Index. 


'  ii 


! 


I.  J. 

1     Interest 7 

* 

Insurance 21 

K. 

O. 

Otis  &  Co.,  Oliver 11 

Lawrence,  Charles lOi 

Lovell,  S.  H 12 

Lockhart  &  Arrott 14 

P. 

Profit  and  Loss  ......•..•••••  8 

M, 

Merchandise 4 

Marsh,  C.C 1 

;     Martin,  C.J 20 

q,. 

1 

112 


K. 

Ruiz,  Joseph 


15 


S. 

Store-Fixtures 6 

Store-Expenses 8 

Shipment  to  New  Orleans 16 

Schooner  Josephine 7 

Shipment  to  Port  au  Prince 16 

Shipment  to  Boston 16 

Sims,  John 20 

Shipment  to  San  Francisco 21 

T. 

Truman,  James 12 


Walker  &  Co.,  H.  B. 


15 


Y. 


IT. 


Z. 


15 


III 


,1" 
■,'4 


I 


Dr. 


Thomas 


18S0. 

Jan. 

April 
(I 


1650. 

May 


5 
15 

30 


To  Bills  Payable '  i 

"  Sundries 9 

j 

"  Balance 13 


$  1,080      00 


30  i   To  Cash 


Dr. 


1850. 


Jan.  5      To  Bills  Payable |      1      $1,230      00 

March     25        "  Cash 7  300  ,    00 


April 


uaiiuc 


18MK 

May        30      To  Cash 


543 

1,114 


32,767 


20 

20 

40 


15  .'  $     198      23 


I 


Christopher 


?0.975 


93 


22,505      93 


15      $     300      00 


ill 


Blanchard. 


Cb. 


18&0. 

Jan.      I     5      By  Sundries 1 

April    I    30        "  Interest I   12 

30        "  Profit  and  Loss I   12 


1850. 

April       30 


By  Balance, 


$28,000      00 

494      16 

4,273      24 


32,767      40 


C.   Marsh. 


Cr. 


1850. 


Jan.  5      By  Sundries, 

April       30 


«< 


30 


1850. 


"   Interest 12 

"  Profit  and  Loss 12 


April       30   :  By  Balance. 


115 


31,144      20 


1      $17,935   ;  00 

297      69 

4,273      24 


22,505   ,  93 


20,975      93 


2 


! 


I   i 

! 


1850. 

Jan. 

5 

it 

12 

u 

19 

u 

20 

tt 

22 

u 

24 

Feb. 

9 

tt 

23 

it 

24 

March 

3 

tt 

4 

tt 

5 

tt 

9 

tt 

10 

tt 

12 

«« 

16 

tt 

18 

tt 

23 

tt 

27 

tt 

28 

April 

7 

tt 

14 

tt 

16 

u 

18 

Dr. 

To  Sundries 

"  Merchandise 

"  Oliver  Otis  &  Co 

"   Merchandise » 

"  James  Truman 

"  Merchandise 

"  William  Blakeley 

"   Merchandise 

"   Bills  Receivable 

"   De  Nones'  Consignment 

"   De  Nones'  Consignment. . . 

**   Bills  Receivable 

"   S.  H.  Lovell 

"   De  Nones'  Consignment  — 

"  Sundries 

"   Bills  Receivable 

"   Paul  Harris 

"   Sundries 

"   Company  1  Merchandise  .  - 
"   Company  1  Merchandise  . . 

"   Interest 

"  Oliver  Otis  &  Co 

"   Fisher's  Consignment 

"   Merchandise   


Cash. 


Cr. 


Carried  forward. . 


116 


1 

1 

) 

2 
2 

2    : 

2 
3 

4  ! 

6 
6 

6  1 
6 

6| 

7J 

7 

7 

7 

8 

8 

8 

9 

9 

1 

$38,000 

00 

125 

00 

1      1,000  i    00 

1                                  ' 

250      00 

1,000 

160 

j         100 

I          120 

1,969 

456 

300 

2,070 

250 

1,233 

'          850 

251 

2,000 

!          909 

440 

j              1 

00 

00 

40A'»  00 

00 

00 

00 

43,7-24  00 

00 

00 

00 

• 

00 

27 

00 

37 

00 

10 

00 

50 

52,086  34 

21^    00 

500      00 

316      SO 

1                 } 

637 .    50 

•d 

53,560 

1 

i 

54 

1 

1850. 

Jan. 
tt 
II 
tt 
tt 
tt 

Feb. 
tt 

<( 

tt 

It 

tt 

tt 

tt 

tt 

it 

March 
(( 

« 
tt 

it 
<< 

April 
tt 

tt 

tt 

tt 

i< 

tt 


7 
14 
16 
17 
28 
30 
2 
2 
4 
12 
13 
20 

25 

26 

28 

28 
2 
3 
7 
9 

20 

25 

26 
2 
2 

10 

11 

13 

15 

18 


By  Store-Fixtures . 
"    Merchandise  . . , 
"   Merchandise  . . . 
"   James  Truman  . 
"   Bills  Receivable 
"   Bills  Payable  . . . 


9 


1 

1 
o 

2 
2 
3 

«      -PMI       -n  11  7,330  00       i 

i)ills  Payable i    3 


3 
3 
.3 
3 


11,603  47 


{ 

'*  Store-Expenses 

*'   Shipment  to  New  Orleans 

"   Merchandise 

"   Merchandise 

"   Walter  Howard j    4 

"  Schooner  Josephine 5 

"   Scb>oner  Josephine 5 

"   Shipment  to  Port  au  Prince !    5 

"  Schooner  Josephine I    5 

"   Store-Expenses 

"   De  Nones*  Consignment, 
"  De  Nones'  Consiirnment. 

"  Bills  Payable 

**   Sundries 

"   C.C.  Marsh 

"   Sundries 

"  Store-Expenses 

"    Merchandise 

"  Joseph  De  Nones 

"   Sundries '. 

"   Shipment  ^o  Boston 

"   Thomas  Blanchard 

"   Irvine  Fisher 


23,297  91 


Carried  forward 


i.7 


5 

6 

6 

6 

7 

7 

8 

8 

8 

9 

9 

9 

9 

10 


$  300 
800 
2,000 
1,000 
2,000 
1,230 
525 
65 
100 
100 
422 
160 
2,600 
155 
120 
26 
45 
460 
45 
4,444 
4,000 
300 
2,400 
462 
300 
22 
1,322 
120 
500 
245 


00 
00 
00 
00 
00 
00 
32 
00 
00 
00 
00 
>  15 
00 
00 

oc 

00 

00 

00  • 

00 

44 

00 

00 

00 

00 

00 

00 

33 

00 

00 

00 


26,269   24 


It 


iin 


Dr. 


Cash. 


1850. 


April 


1S50. 


24 
27 
27 
27 
29 
30 


Brought  forward 

To  Sundries 

"   Merchandise 

"   Profit  and  Loss 

"    Profit  and  Loss 

"   Schooner  Josephine 

"   Sundries 


April       30  I    To  Balance 
May         30        "   Sundries 


lis 


3,450   .  92 


Cr. 


i850. 


April 


<• 


u 


M 


ti 


it 


tt 


« 


tf 


1850. 

May 


21 
24 
28 
30 
30 
30 
30 

30 

30 


23 
30 


37,780  93 


By  Sundries 

"  Sundries 


•••••••• 


:i9 


Brought  forward, 

By  Sundries lo 

"  Interest i  iq 

"   Merchandise 

"*  Store-Expenses 

*'  H.  B.  Walker  &  Co 

"  Joseph  De  Nones 

"  J.  Ruiz 

"  Exchange 

*'  Balance 


11 
11 
11 
U 
11 
11 
12 


13  $10,625 

14  5,147 


826,269 

24 

128 

31 

8 

40 

75 

00 

200 

00 

2,643 

37 

3,402 

98 

4,974 

88 

78 

75 

26,274 

07 

64,055      00 


00 
43 


si?-. 


il'ij 


IW' 


i 


i     I 


'ii 


t"  i 


I    i4 


I 


Dr. 


Merchandise. 


1850. 

Jan. 


Feb. 


(< 


<( 


« 


March 


ft 


April 


M 
«l 


1850. 


April 
May 


it 


5 


14 
14 

16 
16 

12  ; 

13  j 
20 
21 
10 
28 

2 
28 
28 
30 


30 
30 
30 


To 


(I 


i( 


(I 


<( 


(( 


tt 


it 


It 
tt 
tt 
tt 
tt 
tt 


Sundries 

Henry  Austin 

Cash 

Bills  Payable 

Sundries 

10,726  00 

Sundries 

Sundries 

William  Evans 

Merchandise 

si^sM  n 
De  Nones*  Consignment 

Company  1  Merchandise 

S4,fi36  01 

Sundries 

Sundries 

Sundries 

36,056  01 

Profit  and  Loss 


Dollars 


To  Balance 
"  Sundries 
"  Cash 


120 


1 

$3,125 

1 

1,500  \ 

1 

800  ; 

1 

2,100  1 

2 

3,200 

3 

1,240 

3 

6,533  ' 

4 

1,260  1 

4 

1,530  ' 

6 

2,000 

7 

1,248 

8 

2,320 

11 

6,200  I 

11 

3,000  , 

3,562 

V 

* 

39,619 

$15,000 

13 

3,577   : 

14 

610 

00 
00 
00 
00 
00 
00 

11 

00 
00 
00 
50 
00 
00 
00 
86 


47 


50 


itso. 

Jan. 

it 
« 
M 
M 
«l 
M 
«« 

Feb. 
<i 

u 

M 
« 
If 
M 
M 
« 

March 
« 

«i 

April 
«« 

M 
l< 

(I 


1850. 

May 


(( 


« 


8 

10 

12 

13 

16 

20 

24 

26 

2 

4 

6 

17 

20 

21 

23 

24 

27 

2 

9 

12 

10 

13 

18 

27 

30 


23 

30 
30 

16 


By  Paul  Harris 

Bills  Receivable 

Cash , 

Oliver  Otis  &  Co 

Merchandise 

Cash 

Sundries , 

Sundries 

Bills  Payable 

Shipment  to  New  Orleans  . 

Bills  Receivable , 

Bills  Payable 

Walter  Howard , 

Merchandise , 

Sundries 

Bills  Receivable 

Shipment  to  Port  au  Prince , 

Sundries , 

S.  H.  Lovell , 

Cash , 

Joseph  De  Nones 

Shipment  to  Boston 

Sundries 

Cash 

Balance 


6,310  00 


18,383  23 


19,940  23 


34,619  47 


By  Sundries , 
"  Sundries 
"   Cash  . . . 


121 


Cr. 


1 
1 
1 
1 
2 
2 
2 
2 
3 
3 
3 
4 
4 
4 
4 
4 
5 
5 
6 
7 
9 
9 
10 
10 

12 


13 
14 
14 


325 

500 

125 

2,000 

1,200 

250 

410 

400 

550 

1,722 

320 


1,620 

2,000 

1,200 

788 

245 

525 

40 

2,660 

1,837 

141 

15,000 


39,619 


00 

00 
00 
00 
00 
00 
00 
00 
00 
22 
00 


1,500  j  00 
2,730  loo 
1,530   00 


I  00 
00 
I  00 
i  00 
00 
00 
00 
00 
50 
75 

00 

I7 


$  2,590   00 

i 

3,508   00 
1,266  !  00 


'ii    ii 


* 


Dr. 


Bills 


1850. 

Jan. 


(I 
It 
« 


PeK 


<( 


« 


<« 


it 
March 


April 


41 


1850. 


April 
May 


M 


5 
10 
19 
21 
28 

6 
13 
21 
23 
24 

5 
26 
27 
11 
18 


To  Sundries 

"  Merchandise 

*'  Oliver  Otis  &  Co 

"  Paul  Harris 

**  Sundries 

"  Merchandise 

"  Sundries 

"  Bills  Payable 

"  Merchandise 

"  Merchandise 

"  Sundries 

"   Sundries 

"   Company  1  Merchandise 

"  Sundries 

"  Merchandise 


8^18  00 


19,487  37 


18,139  16 


1 
1 

2 

I 
2! 

2 

3| 
41 
4} 

^\ 
4 

6| 

8 

8! 

5 
10 


90,889  16 


30      To  Balance 

18        "  J.Eaton  &  Co. 
30        "  Merchandise 


13 
14 


$  4,670 
500 

1,000 
325 

2,121 
320 
251 
800 
500 

2,000 
707 

4,444 
500 

1,350 

1,200 


00 
00 
00 
00 
00 
00 
37 
00 
00 
00 
35 
44 
00 
00 
00 


20,689      16 


6,998 

35 

554 

90 

1,378 

00 

Receivable. 


Cr. 


1S«}. 

Feb. 

«  I  24 
Marclij  5: 
121 
16 
18, 
20 
23 
30 


*t 


April 


<i 


M 


12      By  Merchandise 

12        "  William  Blakeley 

"  Sundries 

"  Cash 

"  Cash 

"  Cash 

"  Irvine  Fisher 

"  Company  2  Merchandise 

"  Sundries 

"   Balance 


3,600  00 


6,7«37| 


13.600  81 


3 
7; 

lol 
id 

IQ 

i 

12 


^  1,000 

500 

2,000 

2,670 

325 

251 

1,200 

1,300 

4,444 


30     By  Cash 


ISS 


119 


00 
00 
00 
00 
00 
37 
00 
00 
44 


6,99S       35 


14      $1,207      35 


!i 


i| 


1850. 

Jan. 

Feb. 
tt 

March 
« 

April 


1850. 

Tan. 


18S0. 


30 
2 
17 
9 
23 
24 
30 


Dr. 

To  Cash 

"  Sundries.... 
"  Merchandise, 

"  Cash 

"  Sundries . 


Bills 


3^10  00 


3 
3 
4 
6 

!     7 

10,364  44     , 

"  Sundries j   10 

I>,M4  44 

'^   E:il.:..;> 


|! 


1850.      { 

May        30  !   To  Cash 


Dr. 


To  Cash 


April   >    30      To  Balance 


m 


1,230 
1,080 
1,500 
4,444 
2,100 
2,190 
4,137 


Store 


00 
00 
00 
44 
00 
00 

11 


6,681      55 


14      $    500      00 


I 
300  i   00 


300 


$     270 


00 


00 


Payable. 


Cr. 


6 


1850. 

Jan. 


« 


Feb. 


tt 


u 


tt 


M 


April 


5 
16 
22 
13 
16 
21 
27 
28 
20 


1850. 


April    ;    30 
May         16 


By  Sundries 

"   Merchandise 

"  Henry  Austin 

"  Merchandise 

"   Walter  Howard 

"  Bills  Receivable , 

"  Shipment  to  Port  au  Prince. 
"  Shipment  to  Port  au  Prince . 
"   Company  2  Merchandise  . . . 


6,910  X) 


1 
1 

2 
3 
4 
4 
5 
5 


14,648  23     j 
16,681  56 


tt 
tt 


By  Balance 

"  Sundries i   13 

"  Insurance ]    13 


$2,310 
2,100 
1,500 
1,222 
4,444 
800 
2,190 
81 
2,033 


00 
00 
00 
22 
44 
00 
00 
56 
33 


16,681      55 


"  Merchandise. 


13 


$4,137  11 

2,019  01 

401  I  25 

1,720  00 


Fixtures. 


Cr. 


1880. 

April 
tt 


30  ,   By  Profit  and  Loss 


**  Balance 


125 


-I   1 


I 


1850. 

Feb. 


M 


« 


April 


Dr. 


Discount    and 


Dr. 


Schooner 


25  !  To  Sundries, 

26  "  Cash.... 
28        "  Cash.... 


"  Profit  and  Loss, 


6,181  00 


Dollars 


1«M. 

April       30      To  Balance 

1         I 


126 


5      $5,000      00  ■ 
5 
5 
12 


155 

00 

26 

00 

874 

00 

6,055 

00 

$  5,000      00 


|i 


ll 


Interest. 


Cr. 


1850. 

Jan. 
Feb. 

March 
« 

April 
If 

it 

It 

It 
II 


28     i  By  Bills  Receivable 


1850. 


2 
13 

5 
23 

7 
11 
24 
30 
30 
30 
30 


127  06 


143  60 


2 
3 

4 
6 

7 
8 


«  Bills  Payable 

"   Sundries 

'   "  Bills  Receivable 

"   Sundries 

"   Cash , 

"  Sundries j'g 

"  Sundries \iq 

"  Joseph  De  Nones ill 

**  Charles  Lawrence Il2 

"  Paul  Harris 12 

817  98 

"  Profit  and  Loss ,12 


Dollars 


May 


30      By  Cash 


14 


Josephine. 


Cr. 


,  27      By  Shipment  to  Port  au  Prince 

28     ;    "   Merchandise 

"  Merchandise 

"  Cash 

Ifi66  00 


"  Balance 


121 
4 
1 
7 
9 


2 

14 

2 

6 
613 


127 


100 

j 

168 

|37 

35 

10 


21       00 

27      67 


55 

52 
j07 
67 
27 


I 


831      25 


10      50 


f  'I  if 


111 


III 


8 


Dr. 


1850. 

Feb. 


i< 


April 


it 


it 


Dr. 


9 
13 
21 
30 
30 


I 


128 


Store 


Profit 


To  William  Blakeley 

"  Sundries 

"  Cash 

'*    Sundries 

*•  Sundries 


3 

10} 

12 

12 


t    100!  00 

250  I  00 

120 j  00 

1,306  }  03 

8,546  48 


10,322      51 


Expenses. 


Cr. 


8 


I860. 

March 


it 


April 


1850. 

March     30 
27 


April 


M 
M 


27 
30 


17 


14    j  By  De  Nones'  Consignment 

30    j     "   Company  1  Merchandise 

16         "  Fisher's  Consignment 

30        "  Profit  and  Loss 


8     52      24 
39   j  00 


AND      Loss. 


Cr. 


By  Company  1  Merchandise 8 

"  Cash 10 

"  Cash ■  xo 

"   Sundries 


619      88 
1,700    ;  00 


530 

7,472 


00 
63 


10,322    151 


129 


I 


I 


•^       :.1 


Dr. 


1650. 


•( 


« 


1850. 

May 


Dr. 


March     26      To  Sundries. 

April       21        "  Cash 

30        "  Cash  . . . 


30        "  Profit  and  Loss 


16     To  J.  Eaton  &  Co. 


Commission. 


1850. 

April 

30 

!To  Profit  and  Loss 

12 

1 

%    794 

1 

85 

I 

•               y' 

794 

85 

Exchange. 


II 

8      $    355      56 


10 
11 
12 


8 

78 


13 


130 


31 
75 


152      70 


595      32 


I     20      10 


1850. 

Feb. 

March 
« 

April 

u 
it 
tt 
u 


1850. 

Feb. 
April 


20 
14 
30 
16 
38 
30 
30 
30 


Cr. 


t 


y  Walter  Howard 

"  De  Nones*  Consignment 

**  Company  1  Merchandise 

**  Fisher's  Consignment 

"  Merchandise 

"  Cash ill 

«  H.  B.  Walker  &  Co Ill 

"  Joseph  Ruiz Ill 


V 


4 
7 
8 
9 
1 


84 
215 
196 
117 
150 

12 
6 

12 


|14 
71 
25 
00 
00 
50 
63 
62 


794  85 


Or. 


25      By  Schooner  Josephine i i  5 

24        "  Sundries ilO 

**  Joseph  De  Nones 11 


f     177 

I      365 
51 


78 
72 
82 


595      32 


May        23     py  Sundries 13 


L 


131 


105     00 


I 


10 


Dr. 


Dr. 


Jan.  8 

March      20 
April  :    30 

30 


(I 


May 


15      To  Bills  Payable 


Charles 


1850. 

Jan. 

t 

5 

2 

4 

30 

30 

To  Sundries 

1 

5 

6 

12 

1 

$     140 

288 

175 

2 

00 
00 
00 
07 

Marcli 

"  Merchandise 

April 

"  De  Nones*  Consignment 

"  Interest 

605 

07 

I860. 

April 

To  Balance 

t     167 

07 

• 

Paul 


To  Merchandise 

"  Cash 

**  Interest  .... 

"  Balance  .... 


•••*•*.••. 


« 

M 


30 
30 


"  Merchandise 

**  riflAh 


li         I 

1       $     325      00 


7 
12 

12 


132 


14 
14 


2,000      00 
6      67 

4,988      20 


7,319      87 


$  1,988      20 

555      00 

3,000  !    00 


Lawrence. 


1850. 

Feb. 


« 


March 

April 


1850. 


12      By  Merchandise 

27        "   Shipment  to  Port  au  Prince , 
7        *'  De  Nones*  Consignment.... 


30 


"  Balance 


May        28      By  Cash 


Harris. 


1850. 

Jan. 

March 
(I 

it 


21    I  By  Bills  Receivable 
18        "  Cash 


21 
30 


1850. 


April 
May 


"    Company  1  Merchandise 
"  Company  1  Merchandise 


30    j  By  Balance 


30 


**  Interest, 


133 


Cr. 


10 


3 

5 

6 

12 


140 

288 

10 

167 


00 
00 
00 

07 


605      07 


14 


$     167      07 


Cr. 


14 


$    325  00 

2,000  00 

1,187  50 

3,807  1 37 


7,319      87 


8  4,988      20 
13      34 


I 

1 


;  tt'i 


;^; 


w 


■4' 


i 

«>h| 

11 


Dr. 


Oljver 


1850. 

Jan. 

13 

K 

26 

March 

2 

April 

6 

1 

1850. 

May 

20 

1850. 


1850. 

May 


To  Merchandise 

"  Merchandise 

"  Merchandise 

"  Fisher*8  Consignment 


To  Merchandise 


Dr. 


Jan.        22      To  Bills  Payable. 


23      To  Sundries 

22        **  Merchandise 


184 


Henry 


$  6,806      52 
33t      50 


Otis   &  Co. 


Cr. 


11 


1850.    I  ! 

Jan.  19      By  Sundries 

March  5  "   Bills  Receivable 

April  14        «  Sundries 


185C* 

May        30      By  Cash 


2 
9j 


2,000  00 
700  00 
810      00 


3,510      00 


I' 


14      S     350      00 


Austin. 


Cr. 


ISSO. 


Jan.        14  i    By  Merchandise 


1850. 


1      $  1,500     00 


May        16     By  Merchandise !    13      ^    g^Q     ^^ 

2^       "C^«^ I    14  150      00 


1 


135 


Kt 


IH 


!    rl 


12 


Dr. 


James 


1850. 


Jan. 
Feb. 


17 
23 


« 


To  Cash 

**  Merchandise 


•  •  •--•  •••••■••••• 


2      $1,000      00 
4  ,       1,000  ,   00 


136 


2»000      00 


S.  H. 


t     395      00 


Truman. 


Cr, 


12 


1850. 


I 


Jan.        j22      By  Cash jg      ^  i,000      00 

Feb.        26        "  William  Evans ,        5         1,000      00 


1850. 


May        10      By  Merchandise 


14 


2,000      00 


f    212      00 


LOVELL. 


Cr. 


ISM. 


! 


March       9     By  Cash- g    k    850     'oo 

April      n        ..  Sundries 9    •     1,350     00 


1850. 


30 


Balance 


12 


395 


00 
1,995     ,00 


May        30      ByCash 14 


$     300      00 


18 


137 


ts 


Dr. 


'^1 


1650. 

Jan. 

26 

Peo. 

12 

1 

To  Merchandise  . . . 
"  Bills  Receivable 


Dr. 

1850. 

Feb,        16      To  Bills  Payable *. 

"  20        "  Sundries 

i  1 

(  ( 

!  j 

1850. 

April       30      ToBalance 

i         I 


138 


William 


2      $     200 


500 


00 
00 


700 


00 


Walter 


II 


4      $  4,444      44 
4  ;       2,974      29 


7,418      71 


t     307      62 


Blakeley. 


Cr. 


1850. 

Feb. 


9     By  Sundries !     3 

13        "  Sundries 4 


Howard,  London. 


13 


200      00 
500      00 


700      00 


By  Merchandise 3      $  4^888 

"  Schooner  Josephine 5         2,222 

**  Balance 


T3tt 


{■  :,:«: 


0 


If  fit! 


n 


h 


f: 


t 


I 


.1 


III 

Hi 


14 


Dr. 


William 


1850. 


Feb.        26      To  James  Truman 

March     27        «  Company  1  Merchandise 


1850. 


I!  I 

6  j;  11,000     00 

I 

8  M        260      00 
1,260      00 


May        12      To  Cash 14  ,   $ 


200 


00 


Dr. 


LOCKHART 


1850. 


March     16      To  Shipment  to  New  Orleans 


7      $2,020      00 


I 


Dr. 


Joseph 


1850 


I! 


April    :   10      To  Sundries j     9;      $    62      00 

3»469  ,  32 

3,531      32 


30 


"  Sundries. 


11 


440 


Evans. 


Cr. 


14 


I860.      '  I 

Feb.        20      By  Merchandise. 


4      $1,260   '  00 


May         30      By  Merchandise 


&     A  R  R  O  T  T. 


NewOrleni. 


1850. 


I 


April        2      By  Merchandise 


De    Nones.    c«di.. 


1850.       j 

March     14      By  De  Nones*  Consignment 


141 


Cr. 


8   '  $2,020      00 


Cr. 


7      $3,531      32 


3,531      32 


I  l\ 


ft 


•I.    ! 


t  s 


^ 


15 


Dr. 


Irvine 


185).      I 


April    I     8  I   To  Fisher's  Consignment '     9       $  1,440   ■  OO 

"        I   1^         "  Sundries 9  1^350      qq 

"       !  16 


"  Oliver  Otis  &  Co I     9!!        310^00 

"  Sundries 10  '       1,445      qO 


4,545   '  00 


Dr. 


H.   B.   Walker 


lAiO. 


April    I  30      To  Sundries u 


Dr. 


Joseph 


April       30      To  Sundries n      $4,987  '50 


142 


11 

1 
$  2,650 

00          1 

Fisher. 


Cr. 


15 


18A0. 


.  1  I!  I 

April       16      By  Fisher's  Consignment |    9      $  4,545      oO 


&      C  0  M  P.,       Port  au  Prince. 


Cr 


1850.       I 


April      28      By  Merchandise |u    ''tS.eSO    |oO 


Ruiz,       Puerto  Principe. 


Cr. 


1S0O.      !  ! 

April       30      By  Cash 


143 


jl 
11      $4,987 

-- .  I' 


50 


m 


if 


16 


De. 


Shipment   to 


I860.   ' 

Feb.  4;     To  Sundries 

April       30        "  Profit  and  Loss 


3      $1,822 

12 1 1  197 


22 

78 


2,020      00 


Dr. 


Shipment    to 


Feb.    ;    27;     To  Sundries 

"  28        "Sundries i      5 

April       30        "  Profit  and  Loss 12 


$  3,908      00 
201      56 
1,890,    44 


Dr. 


Shipment   to 


I860.  ||  } 

April,    13      ToSundries I      0'    $3,500      00 


I860. 


April       30      To  Balance 


144 


3,500      00 


New   Orleans. 


Cr. 


16 


I860. 


March     16 


By  Lockhart  &  Arrott ;..,.    '    7   ''$2,020 


Port  au   Prince. 


Cr. 


ifeo. 


April       28      By  Merchandise in    ^6,000      00 


6,000 


00 


Boston. 


Cr 


u- 

April 

• 

30 
18 

May 

19 

Hy  Balance 


By  J.  Eaton  &  Co 13 


145 


4,600      00 


'.11 


ITF 


i 


17 


Dr. 


1850. 

March       3 

7 

14 


To  Cash  . . . 
"  Sundries. 
"  Sundries. 


Dr. 


I860- 


i46 


De    Nones* 


)  !l 


Dollars 


Fisher's 


Dollars 


4,680 


6      $     460      00 

6  !|  55      00 

7  3,799      27 


4,314      27 


April       16      To  Sundries 9      $  4,680      00 


00 


Consignment. 


Cr. 


1850. 

March 


3 
4 

9 
10 
10 


By  Cash ,  |  q 

"  Sundries !  g 

«  S.H.Lovell 6 

"  Cash ^  Q 

"  Merchandise '  q 


456 

475 

150 

1,233 

2,000 


Consignment. 


Cr. 


1850. 

April 


M 


II 


<{ 


By  Sundries /,, 3 

"  Irvine  Fisher ; i   9 

"  Shipment  to  Boston  ....^ 9 

"   Thomas  Blanchard 9 

"  Cash ;  9 


$  2,160 

1,440 

720 

43 

316 


17 


4,314    * 

00 
00 
00 
27 
00 

27 


00 
00 
00 
20 
80 


4,680      00 


147 


Wi 


i 


18 


Dr. 


Company  1 


1850. 


March     20      To  Cash '       7 

21        "PaulHarris yli 

"  30        "  Sundries 3 


1850. 


2,000  00 
1,187  50 
4,662      50 


7,850      00 


Dr. 


Company  2 


1850.  I  I  II  I 

April       20      To  Sundries j    lo      $3,333      33 


April       30      To  Balance 


$  3,333      33 


Dr. 


Edward   G. 


148 


Merchandise. 


Cr. 


18 


IBSO. 


w 


March     23      By  Sundries j    7      33,000  00 

i26        "Sundries.... |    3         2,400  00 

(27        "  Sundries...*. 3    ,      1,200  00 

1,250  00 

7,850  ,00 


« 


« 


« 


"  Sundries , I    3 


Merchandise. 


Cr. 


Fail  &  Co. 


Cr. 


1850. 


I 


May 


13 


By  Merchandise 13      3    375      qO 


149 


I      i 

i 


19 

1850. 

April     30 


Dr. 


Balances    op 


it 

30 

u 

30 

*t 

30 

« 

30 

tl 

30 

u 

30 

« 

30 

i 

30 

1 

30 

To  Cash 12 

"  Merchandise 12 

"  Bills  Receivable ! 12 

"  Store-Fixtures 12 

**  Schooner  Josephine !  12 

"  Charles  Lawrence 12 

"  S.H.Lovell 12 

'«  Walter  Howard '  12' 

"  Shipment  to  Boston 12 

"  Company  2  Merchandise 12 


$26,274 
15,000 

6,998 
270 

5,000 
167 
395 
307 

3,500 

3,333 

61,245 


Dr. 


Barclay    & 


xbo 


07 
00 
35 
00 
00 
07 
00 
62 
00 
33 


44 


1850.  i  I  II  { 

May        29      To  Merchandise i     14      $     175      OO 


April    30,    1850. 


1850.     { 


« 


« 


Livingston. 


1650. 


May        22      By  Merchandise 


Ml 


Cr. 


19 


April       30      By  Bills  Payable '  13 

30        "  PaulHarris 13  • 

30   j      '•    Thnmns  Bl.a'tichard !    1  •• 


I 
4,137      11 
4,988      20 

,93 


01,245      44 


Cr. 


13      $    550      00 


20 


Dr. 


1850. 

May        16      To  Cash 


a  J. 


14      $     150      00 


Dr 


John 


luo.            -I  I         II  I 

May        16      To  Cash 14      t    100      00 


Dr.  Joseph 

1850.  I  l! 

May        18      To  Shipment  to  Boston 13      $  4,600      00 


4,600      00 


152 


Martin. 


Cr. 


20 


I860.      {  !  '-  ~  I 

May      (  10   j  By  Store-Expenses '  13  ''  $     300   '  00 


Sims. 


Eaton   &  Co.,   Boston. 


1850. 

May 


« 


By  Sundries 


153 


Cr. 


Cr. 


13      $4,020      10 


"   Sundries i^ 


579       90 


4,600       00 


21 


1850. 


M 


ay 


1850. 


1850. 


May 


Dr. 


Erie    Rail 


16 


To  J.  Eaton  &  Co. 


13      $4,000      00 


Dr. 


Insurance. 


May         18      To  Bills  Payable 13 


401      25 


Dr. 


Shipment    to 


23      To  Sundries 


13       $  6,806      52 


154 


Road    Stoc 


K. 


1850. 


May 


23      By  Sundries 


San    Francisco    (Joint). 


155 


Cr. 


21 


Cr. 


13      8    293 


01 


Cr. 


v\ 


V 


CASH-BOOK. 


B.  &  M. 


1850. 


NoTE.-In  this  book  first  appear  all  the  sums  of  money  which  we  receive 
and  pay  ;  the  entries  arc  made  immediately  on  receiving  or  paying  the  sums. 

This  book  gives  us  an  exact  idea  of  the  state  of  our  Cash  funds;  showin- 
from  what  source  we  have  received,  how  we  have  applied  them,  and  wha" 
amount  we  ought  to  have  on  hand.  From  this  book  entries  pass  into  the  day- 
book daily,  weekly,  or  monthly;  if  weekly  or  monthly,  the  forms  of  the  emries 
are  shown  in  the  day-book  under  date  of  May  30th.  As  this  book  involves 
a  knowledge  of  journalizing,  the  following  rules  may  aid  the  student  in  ma- 
king  entries  m  the  cash-book. 

Rule  1.  The  first  word  or  name  that  we  enter  on  the  Dr.  side,  when  we 
receive  any  sum,  should  be  the  name  of  the  creditor  (person  or  object)  that  we 
owe,  or  ought  to  credit,  for  the  sum  we  receive.  ' 

Rule  2.  The  first  name  or  w(frd  that  we  enter  on  the  Cr.  side,  when  we 
pay  any  sura,  should  be  the  name  of  the  debtor  that  owes  us,  or  that  we  ouffht 
to  debit,  for  the  sum  we  pay. 


I 


1 


i 


II 


Dr. 


Cash. 


1850. 

an. 
It 

t* 


u 
If 
u 


5 

5 

12 

19 
20 

22 

24 


850. 


fan.  i  30 

Feb.     9 


<f 


M 


23 
24 


To  Thos.  Blanchard,  received  of  him  as  capital 26,000 

C.  C.  Marsh,  received  of  him  as  capital 12,000 

"    Merchandise,         received  of  S.  H.  Lovell  for  bill 

of  this  date 125 

Oliver  Otis  &  Co.,  received  of  them  on  account . . .        1,000 
"    Merchandise,        received  for  sundry  sales  of  this 

date 250 

"   James  Truman,     received  of  him  for  loan  of  17th    ' 

inst J  000 

"    Merchandise,         received  for  sundry  sales  of  this    : 

<3ate 160 


40,535 


I 


Balance  on  hand '  33,205 

To  William  Blakeley,  received  of  him  in  full  for  bal- 
ance of  account  of  $200 

"    Merchandise,         received  of  J.  Truman  on  bill  of 

81,620  of  this  date 

"   Bills  Receivable,  received  for  Strang,  Adriance,  & 

Co.'s  Note,  No.  11,  discounted. . 


100 


120 


2,000 


OC 
00 

^00 
00 

00 

.00 

00 

I 

00 

I 

I 

I 

00 
00 
00 
00 


35,425    00 


158 


Forward. 


»  I 


UK. 

Jan.  I    7 
14 


€t 


U 


tl 

it 


(( 


1850. 

Feb. 


16 

17 

28 

30 


10 


Cr. 


By  Store-Fixtures,     paid  W.  Wharton's  bill 

"   Merchandise,        paid  Rogers  &  Brothers  for  bill 


it 


$  300    00 
800  ,  00 


of  this  date 
Merchandise,        paid  C.  Bernard  balance  of  bill 

of  $3,200  of  this  date 

"   James  Truman,    paid  him  as  a  loan 

"   Bills  Receivable,  paid  J.  Truman  as  a  loan  on  his 

Note,  No.  6,  at  12  months 

"   Bills  Payable,       paid  our  Note,  No.  2,  in  favor 

of  T.  P.  Cope  &  Son '    1,230  (  00 

Balance  on  hand 


2,000  '  00 
1,000    00 

i 
2,000    00 


« 


« 


2 
2 

4 


« 


(( 


M 

tt 

tt 

tt 

It 
tt 

tt 


<5 


(< 


12 
13 

20 
! 
'20 

24 

25 

I 

26 

28 

28 

2S 


tt 
tt 

tt 

tt 

ft 
tt 

tt 

tt 

tt 


Merchandise, 
Merchandise, 


By  Store-Expenses,   paid   sundry  expenses,   as   per 

petty  Cash-Book 

Bills  Payable,       paid  balance  of  our  Note,  No.  1, 

„,  .  for  $1,080,  favor  H.  Austin. . . . 

Shipment  to  New  Orleans,  paid  insurance   and 

shipping  expenses  on  Invoice 
consigned  to  Lockhart  &  Arrott, 

per  Brig  Franklin 

paid  Haven  &  Smith  balance  of 

bill  of  $1,240,  of  this  date 

paid  freight  and  charges  on  In- 
voice received  from  W.  Howard, 
London,  per  "Washington"  . . . 

Walter  Howard,  paid  shipping  expenses  on  In- 
voice per  "Atlantic,'*  to  his  order 

Walter  Howard,  paid  Insurance   on  $2,805,  at 

3  o|q,  Invoice  per  "Atlantic"  . . 

Discount,  paid  on  Note  No.  11,  discounted 

Schr.  Josephine,  paid  Capt.  C.  Davis  balance  of 

bill  of  $5,000,  her  cost 

SchF  Josephine,  paid  Wm.  Smith's  bill  for  sun- 
dry articles  for  her 

Shipment  to  Port  au  Prince,  paid  expenses  on  In- 
voice consigned  to  H.  B.  Walker 
&  Co.,  per  "Josephine" 

Schr.  Josephine,  paid  Atlantic  Insurance  Comp. 

^  ° 1 0  premium  on  $5,000 


$     65    00 


525 


100 
100 

422 

75 

85 
31 


32 


00 
00 

00 

00 

15 
00 


2,600    00 


Balance  on  hand 


159 


155 

00 

120 

00 

26 

00 

;ji,l:iO 

53 

35,425 

00 

1 



A' 

3, 


Dr. 


Cash. 


I  'I 


m    ' 

11 

;, 


'sip* 


Mi 


(( 


<( 


tt 


i( 


(( 


it 


tt 


u 


5  I 


1850.  I 

Feb.j  28  I  Balance  on  hand 

Mar.     3  ^  To  De  Nones'  Consignment,  received  for  sundry  sales 
I  of  this  date 

*  De  Nones'  Consignment,  received  of  Thomas  Mil- 
ton for  bill  of  this  date 

'    Bills  Receivable,  received  for  Oliver  Otis  &  Co/s 

acceptance  No.  2 

*  S.  H.  Lovell,         received  of  him  for  balance  of 

account  of  January  

*  De  Nones'  Consignment,  received  of  L.  M.  Hoff- 
man &  Co.  proceeds  of  sale  at 
auction 

'   Bills  Receivable,  received  for  P.  Harris's  Note 

No,  5 

*  Merchandise,         received  of  P.  Harris  for  bill  of 

this  date 

*  Bills  Receivable,  received  for  S.  H.  Lovell's  ac- 
ceptance, No,  8 

*  Paul  Harris,  received  of  him  for  purchases 

in  joint  account 

*  Comp.  1  Merchandise,  received  of  E.  K.  Collins 

balance  of  bill  of  $3,000,  of  this 
date 

'    Comp.  1  Merchandise,  received  of  Haven  &  Smith 

balance  of  bill  of  $1,250 

'    Comp.  1  Merchandise,  received  of  O.  Otis  &  Co. 

balance  of  bill  of  $1,200 


1850. 

Mar. 
Apr. 


9] 
I 
10 

12 

12: 

16 
18 
23 

28 
27 


I 


31,120 

456 

300 

2,670 

250 

1,233 


53 
00 
00 
00 
00 

27 


325  i  00 

I 
525    00 

251    37 

2,000    00 


909 

1 

440 


30^ 

7  j  To  Interest, 


it 

tt 
tt 

tt 


8 

14 
16 

18 


2i 


Balance  on  hand 

received  on  C.  Bernard's  Note, 
No.  15,  renew^al  of  No.  1 

"   Fisher's  Consignment,  received  of  H.  Burrell  & 

Co.  for  bill  of  this  date 

"    Oliver  Otis  &  Co.,  received  of  them  on  account . . . 

"   Fisher's  Consignment,  received  of  P.  Harris  for 

bill  of  this  date 

"   Merchandise,        received   of  T.   Owen   &  Son 

on  bill  of  $1,837.50,  of  this 
date 

"    Bills  Receivable,  received  balance  of  Brown  Bros. 

&  Co.'s  Bill  of  Exch.,  No.  13, 
for  «ei,000,  sold 


40,481 


28,787 
21 


Forward. 


10 
50 

00 

77 

33 
00 


160 


1,440 
500 

00 
00 

316 

80 

637 

50 

2,622 

71 
34 

34,325 

^ 

II 


II 


20 


20 


25 
26 


1SS6. 

Apr. 


«i 


II 


<i 
it 

tt 
«i 


1 
1 

2 


8 
10 

11 
13 


Cr. 


1850. 

Mar. 

2 

II 

3 

11 

7 

II 

9 

By  Store-Expenses,   paid  sundry  expenses,   as   per 

petty  Cash-Book 

"  De  Nones'  Consignment,  paid  for  Freight  and  Du- 
ties on  Invoice  received  from  J. 
De  Nones,  Cadiz,  per  Brig  Clio 

"    De  Nones'  Consignment,  paid  for  damages  in  sales 

of  3d  and  4th  inst 

"    Bills  Payable,       paid  our  acceptance,  No.  8,  in 

favor  of  Lewis  Clapier 

"    Comp.  1  Merchandise,  paid  Bunker  &  Starr  for 

our  ^  bill  in  joint  account  with 
P.  Harris 

"   Paul  Harris,  paid  Bunker  &  Starr  for  his  J 

bill  of  Flour  in  joint  account 

*    with  us 

C.  C.  Marsh,         paid  him  on  account 

"  Bills  Receivable,  paid  Brown  Brothers  &  Co.  bal- 
ance of  their  Bill  of  Exchange 
of  dei,000=$4,S00 

Balance  on  hand 


By  Store-Expenses,    paid   sundry   expenses    as   per 

petty  Cash-Book 

"    Store-Expenses,    paid  G90.  Loder  three  months 

rent  o^  Store 

"  Merchandise,  paid  Freight  and  charges  on  In- 
voice received  from  Lockhart  & 
Arrott,  N.  Orleans 

"    Irvine  Fisher,       paid  him  on  account 

"   Joseph  De  Nones,  paid  for  damages  in  sales  on  his 

account  

"    Irvine  Fisher,       paid  him  on  account 

"   Shipment  to  Boston,   paid   expenses   on   Invoice 

consigned  to  J.  Eaton  &  Co., 
per  Brig  Pilot 


Forward. 


$     45 

460 

45 

4,444 

2,000 

2,000 


00 

00 
00 
44 

00 

0 


300  jOO 


2,400 
28,787 


00 
33 


21 


161 


ii 


40.481 

77 

$  162 

00 

300 

00 

300 
1,440 

00 
00 

22 
1,322 

00 
33 

120 

GO 

3,666 

33 

Ml 


Dr. 


'-t 


if 


1850. 

Apr.  27 


« 


<i 


« 


it 


u 


27 
27 

29 

30 

I 
30 


If!60. 


Apr^  3C 


Cash. 


i 

34,325 ;  34 


Brought 

To  Merchandise,  received  of  J.  Percival  for  trans- 
fer to  him  of  purchase  at  auc- 
tion    141 

"   Profit  and  Loss,   received  for  proceeds  of  lottery 

tickets !■     1,700 

"  Profit  and  Loss,  received  in  an  anonymous  letter  ''■ 

addressed  to  us 530 

**    Schr.  Josephine,  received  for  Freight,  proceeds 

of  last  voyage 500 

"  Joseph  Ruiz,  received  for  his  draft  on  P.  Har- 
mony's Nephews,  at  sight,  for 
$5,000 I'    4,987 

"  Commission,  received  on  draft  of  S5,000,  col- 
lected for  account  of  J.  Ruiz . .  • 


75 
00 
00 
00 


'  4,987 

50 

!    12 

j 
1 

50 

i 

1 

42,197 

09 

Balance  on  hand 20,274    07 


(6 


Cr. 


1850. 

Apr.!  15 
'  18' 
21* 

21 ; 

24  1 


it 


(( 


« 


u 


M 


28 

'30' 

30  I 

!         I 

30. 


By 

(( 

<( 
<( 

(( 

(( 

tt 


Brought 

Thos.  Blanchard,  paid  him  on  account 

Irvine  Fisher,  paid  him  balance  of  account 
Profit  and  Loss,  paid  for  12  lottery  tickets  . . 
Exchancre, 

T  ° 

Interest, 


Merchandise, 


paid  on  $475  uncurrent  money, 
paid  on  our  Note  No.  13,  re- 
newal of  No.  9 

paid  expenses  on  Invoice  re- 
ceived from  H.  B.  Walker  &  Co. 

Store-Expenses,   paid  expenses  this  month,  as  per 

petty  Cash-Book 

H.  B.  Walker  &  Co.,  paid  A.  Belmont  for  Bill  of 

Exchange,  No.  18,  for  14,062.72 
francs  remitted  to  them 

Joseph  De  Nones,  paid  B.  Blanco  for  Bill  of  Ex- 
change, No.  19,  on  Francia  &  Co., 
for  $3,454.80,  remitted  to  him- . 
paid  M.  Taylor  for  Bill  of  Ex- 
change, No.  20,  on  Drake  Bros. 
&  Co.,  for  $5,050,  remitted  to 

him 

paid  premium  on  10,500  Span- 
ish dollars,  at  f  ^|o 

:in  hand 


30      "   Joseph  Ruiz, 


30  j    "   Exchange, 


r 

$3,666 

33 

500 

00 

245 

00 

120 

00 

8 

31 

8 

40 

75 

00 

200 

00 

2,643 

37 

3,402 

1 

98 

4,974    88 


78 
36,274 


I 


75 

07 


42,197    09 


J-OS 


•voj 


w  1  i 


Ji 


J 


IIYOICE-BOOK. 


B.  &  M. 


1850. 


Note.— In  this  book  are  copied  all  bills  of  goo^s  bought  and  all  invoices  of 
goods  received  into  our  possession.  From  this  book  the  entries  pass  into  the 
day-book,  either  daily,  weekly,  or  monthly.  If  weekly  or  monthly  the  word- 
ing or  form  of  the  day-book  entries  is  shown  under  date  of  May,  in  the  day- 
book. 


A 


New  York,   January  5,  1850. 


1 


t 
f 

t 

'  'i 


ni 


In  ■ 


i     ( 


E. 


Inventory  of  Merchandise  advanced  by  C.  C.  Marsh,  as  11 
Capital:—  jj 


T,'' 


20  doz.  Snyder's  Shovels at 

20     "     Spades 

50  boxes  Derby  Scythe-Stones 

40  doz.  Grass  Scythes 

20    "     Corn         "      

60  "  Porter's  Patent  Balances  . . 
200  common  Curry-Combs 

25  gross  Britannia  Tablespoons 

10      "  "         Teaspoons 

20  6  ft.  Mill  Saws 

20  61  ft.  Cross-Cut  Saws 

30  Razor  Strops 

100  pr.  Waffle  Irons 

50  doz.  Patent  Coffee-Mills 

2000  qr.-in.  Steel  Augers 

20  doz.  Collins'  Axes 

1^  reams  Hardware  Paper 

New  York,  January  1,  1850. 

Signed 


$7.50 

7.50 

3.25 

12.00 

13.00 

10.00 

.62i 

5.00 

2.00 

4.75 

3.00 

2.00 

.62^ 
5.00 
.06 
20.00 


$150  00 
150  00 
162  50 
480  00 
260  00 
600  00 
125  00 
125  00 

20  00 

95  00 

60  00 

60  00 

62  50  j, 
250  00  ii 
120  00  I 
400  00  !i 

5  00      $3,125    00 


C3 


C.  C.  Marsh. 


E. 


New  York,  January  14,  1850. 

Messrs.  Blan chard  &  Marsh 

Bought  of  Henry  Austin, 

1  crate  common  Curry-Combs — 

100  doz at 

1  crate  patent  Curry-Combs,  100  doz. 
20  doz.  Goodyear's  patent  Pitchforks. 
10 

5 
15 

6 

6 
40 


tt 


(( 


tt 


i( 


.621 
.87| 

5.50 

9.50 

7.50 


Manure 
Long  Shovels 

Madeira  Straw-Knives 14.00 

real  Steyre  Scythes 10.00 

common  German  Scythes 5.00 

Jack-Saws 2.75 

20  boxes  Iron  Mills 6.00 

1  cask,  50  pieces,  Waffle  Irons 7.50 

1     "     Cutlery 


(( 


$62 

50 

87 

50 

110 

00 

95 

00 

37 

50 

210 

00 

60 

00 

30 

00 

110 

00 

120 

00 

37 

50 

540- 

00 

1,500    00 


Note  at  30  days. 


166 


ii 


New  York,  January   15,  1850. 


New  York,  January  15,  1850. 

Messrs.  Blanch ard  &  Marsh 

Bought  of  Rogers  &  Brothers, 

10  boxes  Cotton  Cards,  4  doz.  each. .  .at  $5.50  $220  00 

5  «      Wool       "        4         «       ...       4.00       80  00 
20      "      best  Ink 2.00       40  00 

6  cwt.  American  Blister  Steel 6.50       39  00 

250  lbs.  German  Steel 15       37  50 

100    «  "  "      14       14  00 

3  Mousehole  Anvils,  wt.  600  lbs 12^  75  00 

3  Birmingham     "        "    500   " 07  35  00 

20  gross  Gilt  Vest  Buttons 75  15  00 

40     "      Gilt  Coat       "       1.50  60  00 

10     "      Steel  Coat     «        4.50  45  00 

10     "      Steel  Vest     «       2.OO  20  00 

3     "      Braces  and  Bitts 10.00  30  00 

2  doz.  Knives  and  Forks 11.25  22  50 

6    "     Rogers'  Penknives 5.00  30  00 

1  "     Knob  Locks 10.00  10  00 

2  "     32-inch  Grass  Scythes 13.50  27  00 

Received  Payment, 

Rogers  &  Brothers, 
^^^^  pr.  John  Sims. 


$    800    00 


/«7 


t  >i 


I.  ^ 


B&DI 

No.  I. 
No.  2. 
No.  2. 

No.  3. 
No.  4. 
No.  5. 


E. 


New  York,   February   13,  1850. 


Invoice  of  Merchandise  shipped  per  steamer  Washing, 
ton,  Capt  Floyd,  consigned  to  Blanchard  &  Marsh, 
INew  York,  pursuant  to  their  order  and  for  their  ac 
count,  VIZ. : — 

5  Cases. 

12  ps.  210  yds.  Super  Blue  Cloth,  at  20s... 06210  00  00 

11    "    325     "     Black  Cloth 30s...    487  10  00 

9   "    275     "     Brown   and   Drab 

Cassime/es lOs...    137  10  00 


75  "  2500 
24  "  244 
20   *'    300 


« 


(( 


i( 


Ginfjharas 


Is...    125  00  00 


6-4  Muslin ig.  2d.    14  04  08 

4-4  Muslin Is...      15  qo  00 


Charges. 


989  04  08 


Packing  Cases £  3  15  q2 

Duty  and  entry jg  j^  qq 

Cartage  and  litterage 19  jo  qqi 

Insurance  and  policy 22  04  06 

Commission 52  07  07J   110  15  04 


London,  December  31,  1849. 


dCllOO  00  00 


(Signed)  Walter  Howard. 

Equal  to,  at  the  rate  of  4s.  6d.  per 


I6d 


\ 


SALES-BOOK. 


B.  &  M. 


1850. 


$4,888 


S9 


Note.  — In  this  book  first  appears  a  full  description  of  all  goods  sold  or 
passed  from  our  hands,  or  out  of  our  possession.  From  this  book  the  amounts 
go  10  the  day-book,  either  daily,  weekly,  or  monthly:  if  weekly  or  monthly, 
the  form  of  the  entry  in  the  day-book  is  shown  under  date  of  May  in  that  book. 

At  the  time  the  purchaser  selects  his  goods,  we  make  an  entry  in  this  book, 
showing  the  quantity,  quality,  and  price  of  the  same ;  and  from  this  entry  we 
make  the  bill  which  we  give  the  purchaser. 


22 


H' 


\l 


1 


K. 


CO 

d 

o 
o 


<v 


CA 

w 

o 


New   York,  January   8,   1850. 


Sold  to  Paul  Harris,  at  60  days 

250  doz.  common  Curry-Combs at  $  .08  $170  00 

10  gro.  Allison's  Britannia  Teaspoons       2.12\     2125' 

30  doz.  Duff  Razor  Strops 2.121     63  75 

1000  qr.-in.  Can's  Steel  Augers 07       70  00      $    325    DO 


10 


Sold  to  William  Blakeley,  at  30  days— 

1000  qr.-in.  Augers at  $  .07 

100  doz.  Curry-Combs 87i 

20    "     Pitchforks ^ 5*50^ 

10    "     Manure  Forks 9.50 

5    "     Long  Shovels 7,50 

20    «     Wool  Cards 4.00 

10  gross  Gilt  Vest  Buttons .73 


S70 
87 

110 

95 

37 

80 

7 


00 
50 
00 
00 
50 
00 
80 


2 J  per  cent,  advance, 


487 
12 


SO 
20 


11 


Sold  to  S.  H.  Lovell— 


Cash 


3  Patent  Balances at  $10.00  $30  00 

6  doz.  Coffee-Mills 5.00  30  00 

2  doz.  Collins'  Axes 2O.OO  40  00 

3  "     Britannia  Tablespoons 5.00  15  00 

Teaspoons 2.00  1 0  00 


« 


170 


500     .10 


125 


New   York,    February   4,   1850. 


Invoice  of  Hardware  shipped  per  Brig  Franklin,  Kay, 
consigned  to  Lockhart  &  Arrott,  New  Orleans,  to  be 
sold  on  our  account,  viz. : — 

15  Boxes. 


N.O. 


am 


E. 


20  doz.  Shovels at  $7.50  $150  00 

20     "     Spades 7  59 

50  boxes  Scythe-Stones 3.25 

40  doz.  Grass  Scythes 12.00 

^0     "     Corn         "        6*30 

30  patent  Balances 10.00 

20  Mill  Saws 4*75 

20  Cross-Cut  Saws 3,00 

20  doz.  Pitchforks '. .        5*50 

10     '«     Coffee-Mills 5.0O 

55  pr.  Waffle-Irons 53^ 

1  ream  Hardware  Paper 


150  00 

162  50 

480  00 

126  00 

300  00 

95  00 

60  00 

110  00 

50  00 

34  47 

4  25 


Charges.  • 


1,722  22 


Cartage  and  labor <g20  33 

Packing  Boxes 25  63 

Insurance   on   $1,768,  at   3  per  cent., 

and  policy 54  q^  ^j^qq  qq 

New  York,  February  4,  1850. 


$1,822    22 


m 


II  I 


COMMISSION  SALES-BOOK. 


B.  &  M. 


1850. 


Note.  —  This  book  contains  a  minute  description  of  the  merchandise  soio 
for  account  of  others.     The  entries  in  it  are  drawn  from  the  sales-book. 

From  this  book  we  make  the  account-sales  that  we  may  have  to  render  to 
those  persons  for  whom  we  have  sold  goods. 


I 


f  ; 


Dr. 


Sales  of  Fruit  for  Acco 


UNT 


3     To  Cash, 


i 


ti 


n 


« 


14 
14 
14 


paid  Duty  and  permit 

paid  Freight  and  primage 

paid  Cartage  and  labor 

C.  Lawrence,  paid  him  for  damages 

Cash,  paid  sundries  for  damages 

Store-Expenses,  Storage,  and  Advertising 

"  Commission  on  $4,314.27,  at  5  o|o 

"  Joseph  De  Nones,  for  amount  of  net  proceeds 

due  May  •SS,  1850, 


« 


<( 


4( 


$    340 

108 

12 

10 

45 

52 

215 


00 

f 

loo 

00 
00 


00 

1 24 

71 


3,531    32 


4,314  .27 


•  The  Account-sales  which  we  render  to  Mr.  Do  Nones  made 
oat  from  the  above,  and  the  calculation  for  averaging  this  a  Z, 
oa,eerta,n  when  the  net  p„.eeds  are  due,  wilf  he'foand  aTon' 
the  Forms  and  Calculations  at  the  end  of  the  book.  ° 


ii 


174 


OF  Joseph  De   Nones,   cadiz. 


Cr. 


1 


isso. 
M^r. 


u 


« 


3  i  By  Cash, 
4 


4 
9 

10 


100  boxes  Lemons at  $3 

52  boxes  Oranges 3 

"  C.Lawrence,    25  boxes  Oranges,  60  ds.      3 

200  jars  Olives 

"   Cash,  100  boxes  Oranges 3 

"   S.  H.  Lovell,     25  boxes  Lemons,  90  ds.      3 

.  25  boxes  Oranges 3 

*'  Cash,  at  Auction — 

150  boxes  Lemons at  $5.00  $750 

110  boxes  Oranges 3.80     418 

220  jars  Olives 50     110 


00  .   $ 

00 

00 

50 

00 

00 

00 

00 
00 
00 


175 


aoo   DC 

156  ioo 

75  1 00 

100  1 00 

300    00 

75    00 

75  loo 


1,278  00  i- 

I  Auctioneer's  Commission  2^^\o 44  73  1,233  27 

10    By  Merchandise,  4,000  jars  Olives,  4  mos.  . .  at  .50  2,000  00 

I'  4,314  27 


1850. 

Mar. 


«i 


tt 


u 


it 


41 


Dr. 


Sales  of  Merchandise  in  Joint 


Note.— The  Acrount-siiles  made  out  from  the  above,  for  render- 
ing to  Mr.  Harris,  is  among  the  Forms,  at  the  end  of  the  book. 

•  The  calculation  for  averaging  this  accoant,  to  ascertain  when 
the  net  proceeds  are  due,  will  be  found  among  the  Calculations,  I 
at  the  end  of  the  book. 


OC 


20  ;  To  Cash,  paid  for  800  barrels  Flour,  at  $5 

=$4,000.     Our  one  half i    82,000 

21  "  Paul  Harris,    received  of  him  500  bbls.  Flour, 

at  $4.75  =  $2,375.     Our  one  half  ,      1,187    50 
30       *'  Storage,  on   1,300  barrels,   at  3  cts.  per 

month 

30  i     "Commission,    on  $7,850,  at  2  J  oJq iqq    25 

30       "   Paul  Harris,    his   half  of  net    proceeds,    due 

due  May  5,  1850* 3,807  '  37 

30       "  Profit  and  Loss,  our  half  net  gain 619,88 


39 


00 


7,850 


00 


IM 


X 


Account   with   Paul  Harris. 


Cr. 


1850.    i 

Mar.     23    By  Cash, 


500  bbls.  Flour at  $6  00  :    $3,000    00 

"  Bills  Receivable,  400  bbls.  Flour  60  ds.        6  00  j      2,400    00 
"   Sundries,  200  bbls.  Flour 6  00  j      1,200  1 00 


«« 


26 
27 


28      "  Merchandise.       200  bbls.  Flour  3  mos.       6  25 


25 


177 


BILL-BOOK. 


B.  &  M. 


1850. 


NoTE.-In  this  book  all  notes,  drafts,  acceptances,  and  bills  of  exchan-e  in     • 
our  favor  or  against  us,  are  first  entered.     This  book  supplies  us  with  the     ! 
dates,  the  names,  the  time  or  credit,  the  time  when  due,  and  amounts  of  all 
paper-claims  against  us  or  in  our  favor,  without  referring  to  the  documents 
themselves. 


Bills 


N<"    DRAWN  AT 


DATES. 


DRAWN  BY 


1 

N.York 

Jan.  4, 1850 

Boston 

Dec.31,1849 

3 

N.York 

Jan.  10,1 850 

4 

do. 

"    19,    *' 

5 

do. 

"      8,    ♦' 

6 

do. 

"    28,    " 

7 

do. 

Feb.  4,    " 

8 

do. 

"    13,    " 

9 

do. 

"    21,    " 

10 

do. 

"    23,    " 

11 

do. 

*♦    24,    " 

12 

do. 

Mar.  5,    " 

13 

do. 

"   26,    " 

It 

do. 

"   27,    " 

i5 

do. 

Apr.  7,    " 

16 

do. 

"    11,    " 

17 

do. 

Jan.  17,   " 

IS 

do. 

Apr.  30,  " 

19 

,        do. 

"    30,    " 

20 

do. 

♦•    30,    " 

21  Boston    '  May  16,  " 

22  N.York  "   15,    " 

23  do.      I  "    20,    " 

24  do.  "    27,    " 


ON  WHOM. 


Oliver  Otis  &  Co. 


S.  H.  Lovell 


Christopher  Bernard  . 

T.Perkins  &  Co 

William  Blakeley 

Oliver  Otis  &  Co 

Paul  Harris 

James  Truman 

Christopher  Bernard  . 

William  Blakeley 

Christopher  Bernard  -  , 

James  Truman 

Strang,  Adriance,&  Co     

Oliver  Otis  &  Co 

Brown  Brothers  &  Co      Brown,  Shipley,  &  Co. 

Oliver  Otis  «fe  Co 

Christopher  Bernard 

S.  H.  Lovell 

Irvine  Fisher 

A.  Belmont 

B.  Blanco Francia  &  Co 

Moses  Taylor Drake  Brothers  &  Co. 


J.  Eaton  &  Co.. 
A.  G.  Beck  . . . . 
W.  F.  Mott,  Jr. 
A.  Aranguran. . 


Eagle  &  Hazard  . 


180 


Receivable. 


WHOSE    FAVOR. 

TIME. 

DUE. 

i' 

\\     AMOUAT. 

,  1 
1  , 

REMARKS. 

Thomas  Blanchard  . . . 

90  days. 

'  April  7, 1850 

$2000 

i 
00 

Re'wedbyNo.ir). 

C.  C.  Marsh 

60  days.  '  Mar.  4,    " 

2670 

00 

Paid  Mar.  5, 1850. 

Blanchard  &  Marsh. . . 

30  days.     Feb.  12,    " 

500 

00 

Charged  to  Win. 

do. 

30  days.     Feb.  21,     " 

1000 

00 

Klakeley  Pel)   I'J.T.d. 
Passed   to  Haven 

do. 

60  days.     Mar.  12,    " 

325 

00 

ifePmitli,  Feb.  la.Txi. 
Paid  Mar.  12, '50. 

Paul  Harris 

12  mos.      Jan.  31,1851 
6  mos.     Aug.  7,1850 

2121 
320 

on  M 

Blanchard  &  Marsh. . . 

00 

1 

do. 

30  days.     Mar.  18,    " 

251 

37 

Paid  Mar.  16, '50. 

do. 

60  days      Apl.  25y     " 

800 

00 

Pass'd  Wilmerd'g 

do. 

60  days.     Apl.  27,     " 

500 

00 

&  Mount  Apl.  20, '50. 
Pass'd  Wilmerd'g 

do. 

90  days.     May  28,    " 

2000 

00 

<fe  Mount  Apl.  y(X  T)!). 
Discounted  Febr 

24,  1850. 

do. 

60  days.     May    7,    " 

707 

35 

Paid  May  7, 1850. 

do. 

20ds.s't 

4444 

44 

Sold  Apl.  24, '50. 

do. 

60  days.     May  29, 1850 

500 

00 

Paid  May  29,  '50. 

do. 

60  days.     June  9,    " 

2000 

00 

do.                     i 

4  mos.     Aug.  14,    *; 

1350 

00 

T   Owen  &  Son 

3  mos.      Apl.  20,    " 

1200 

00 

Pass'd  Apl.  20, '50. 

H.  B.Walker  &  Co... 

60ds.s't                     Pr. 

'  14062 

73 

Remitted  to  H.  B. 

Blanchard  &  Marsh  . . 

ISds.s't 

$3454 

80 

Walker  &  Co.  Apl.  ;«j 
Remitted  to  J.  de 

Joseph  Ruiz 

SOds.s't 

5050 

03 

Nonee,  Apl.  30,  la^O. 
Remit'd  to  J.  Ruiz 

t 

i 

i 

1 
90 

April  30,  1850. 

Blanchard  &'Marsh. . . 

60  days.     July  IS,  1850 

554  ; 

i 

do. 

4  mos.     Aug.  18,    " 

352 

00 

1 

do. 

3  mos.      Aug.  23,    " 

415 

00  i 

do. 

1 

i 

I 

6  mos. 

i 

Nov.  30,    " 

j 

I 
1 

611 

i 

1 

00  : 

i 

i 

1 
1 

181 


Bills 


Pay 


N"* 

1 
2 
3 
4 


5 


6 

7 
8 
9 
10 
11 
12 
13 

14 
15 
16 
17 
18 
19 
20 


DRAWN  AT 


J  J  ATI 


I'flAWN  UY 


ON  WHOM. 


Boston 
N.  York 

do. 

do. 

do. 

do. 

do. 
London 
N.  York 

do. 

do. 

do. 

do. 


Dec.  27,  '49     J.  Eaton  &  Co 

Oct.  29,  "        C.  C.  Marsh 

Jan.  16,  '50     Blanchard  &;  Marsh 


Thomas  Blanchard  . . . 


(( 


(( 


14,  « 
Feb.  13,  " 
"  13,  " 
"  13,  *♦ 
"  16, 
"  21,  ♦* 
"  27,  " 
"  28,  " 
Apr.  20,  " 
"     24,    " 


do. 

do. 

do. 

do. 

Walter  Howard 

Blanchard  &  Marsh 

do. 

do. 

do. 

do. 


Blanchard  &  Marsh, 


N.York  .  May    4,  '50  ;  Blanchard  &  Marsh 


do. 
do. 
do. 
do. 
do. 
do. 


<( 


(( 


6, 
15, 
"  20, 
"  25, 
"  26, 
"     28, 


do. 
do. 
do. 
do. 
do. 
do. 


!82 


WHOSE    FAVOR. 


Henry  Austin 

T.  P.  Cope  &  Son 

Rogers  &  Brothers  . . , 

Henry  Austin 

United  States 

do. 
do. 

Lrwis  Clapier 

Cliristopher  Bernard . . 

.T.  R.  Dallett  &  Co 

Phoenix  Insurance  Co. 
Wilmerding  &  Mount 
Christopher  Bernard. . 


ABLE. 


TIME. 


DUE. 


AMOUNT. 


REMARKS. 


T.  Owen  &  Son 

do. 

Paul  Harris 

Atlantic  Mutual  Ins.  Co. 
Trujillo  &  Barreiras.. 
Harmony's  Nephews . . 
Spofrord,Ti 'eston,  &  Co 


;  60  days. 
i  90  days. 
\  90  days. 
:  30  days. 
I    8  mos. 

10  mos. 

12  mos. 

20ds.s't 

60  days. 

60  days. 

90  days 

4  mos. 

60  days. 


Feb.  28, 1850 

Jan.  30,  " 

Apl.  19,  « 

Feb.  16,  " 

Oct.  16,  " 

Dec.  16,  " 

Feb.  16,  " 

Mar.  11,  " 

Apl.  25,  " 

■  May    1,  " 

June  1,  ** 

Aug.  23,  " 

June  26,  " 


20  days. 
20  days 

3  mos. 
7  mos. 

4  mos. 
6  mos. 
3  mos 


May  27,  " 

May  29,  " 

Aug.  IS,  " 

Dec.  23,  " 

Sept.  28,  " 

Nov.  29,  " 

Aug.  31,  " 


183 


$1080    00 
1230    00 
2100    00 
1500    OC 
407  1 40 
407    41 
407  1 41 
4444    44 
800    00 
2190  1 00 
81  {56 
2033    33 
800    00 


1500 

00 

j  407 

40  1 

407 

41  1 

1 

1  ''' 

UU 

41  1 

44 

800 

00 

,  2190  . 

00 

81 

56  I 

1 

Paid  Feb.  2, 1850 
Paid  Jan.  30,  '50 
Paid  Mar.  23, '50 
Paid  Feb.  17, '.50 


Paid  Mar.  9, 1850 
Re'wedbyNo.ia 
Paid  Apr.  24,  '50 


300    00 


200 
2019 


00 
01 


,  Paid  May  27, '50 
'Paid  May  29, '50 


401  125 
320  1 00 
030  00 
270  00 


i 


* 


MERCANTILE 


FORMS  AND  CALCULATIOIS, 


VIZ.: 


Receipts. 
Orders. 

Promissory  Notes. 

Endorsed  Notes. 

Drafts. 

Bills  of  Exchange. 

Accounts-Sales. 

Accounts-Current. 

Letters. 


Discount  and  Interest, 
Commission. 
Insurance. 
Exchanges  — 

French, 

English,  &c. 
Equation  of  Payments. 
Averaging  Balances. 
Profits  and  Losses. 


24 


[Ii 


^11 


186 


MERCANTILE  FORMS. 


pCETPT  FOR  PAVMKNT  hv  A  PfTJ. 
From  transaction  cf  Jan. : )  ■        -kt         -xr 

New  York,  January  7,  1850. 

Received  of  Messrs.  Blanchard  &  Marsh,  three  hundred  dollars,  in 
full  for  bill  of  store-fixtures,  of  this  date. 

Geo.  W.  Wharton. 


SUOO  o|io. 


ElVT  FOR  A  \OTi:. 

(From  ,jn  uf  Jrui,  2C.) 

New  York,  January  22,  1850. 
Received  of  Messrs.  Blanchard  &  Marsh,  their  note  at  thirty  days, 
dated  14th  inst.,  for  one  thousand  five  hundred  dollars. 

Henry  Austin. 


PROMISS(H{Y     NOTF  — ,.V      nr.,   ,^-p, 

AiAn  01  (From  tranf^^r'i-r.  of  Jan.  5.) 

'1^0    1 100  New  York,  January  4,  1850 

On  demand,  I  promise  to  pay  to  the  order  of  C.  C.  Marsh,  oup 
hundred  and  forty  dollars :  Value  received. 

Charles  Lawrence 


PR0\fI«2>'ORy  VOTP 

'500    I J  00  New  York,  January  10,  1850. 

Thirty  days  afler  date,  I  promise  to  pay  to  the  order  of  Blanchard 
&  Marsh,  five  hundred  dollars  :  value  received. 

1%.   r.  u  ,«  lom  William  Blakeley. 

Due  Feb.  12, 185a 


ENT)On.SEl)  NO'J'E— AviTfi  ivrrnr'^T. 
^  -'1  tronfnrfion  of  Jm.  2«.) 

«2,121  00.  New  York,  January  28,  1850. 

Twelve  months  after  date,  I  promise  to  pay  to  the  order  of  Paul 
Harris,  two  thousand  one  hundred  and  twenty-one  dollars :  value  re 
ceived. 

Due  Jan.  31, 1851.  JamES  TruMAN. 

Note— As  P.  Harris  is  the  endorser  in  tliis  note,  his  name  should  be  on  the  back  of  it.  He 
may  endorse  specially  or  eim ply— specially  by  writing  •'  Pay  to  the  order  of  Blanchard  & 
Marsh ;"  simply,  by  merely  writing  his  name. 


MERCANTILE  FORMS. 


PKO.MissoRY  .\ori:. 


187 


81,500  o|ioo  New  York,  January  14, 1850. 

Thirty  days  after  date,  we  promise  to  pay  to  the  order  of  Henry 
Austin,  one  thousand  and  five  hundred  dollars  :  value  received. 

Blanchard  &  Marsh. 

Due  Feb.  16, 185a 


-> 


[No.l.]  BILL  OF  F'''''^^'V'-^f^ 

(FrciT!  trnMr.c-t-fjn  cf  FcV.  ^Z.'i 

Exch.  for  66500  stg.  New  York,  Februar*£5,  1850. 

^ixty  days  after  sight  of  this  our  first  of  exchange  (second,  third, 
and  fourth,  of  same  tenor  and  date,  unpaid),  pay  to  the  order  of  Capt. 
Caleb  Davis  five  hundred  pounds  sterling,  value  received,  and  charge 
the  same  to  our  account. 

To  Walter  Howard,  London. 


Blanchard  &  Marsh. 


NoTB  —The  above  is  one  of  the  set.    A  bill  of  exchange  consists  of  four  drafts,  in  order  to 
expedite  the  forwarding  and  collecting ;  one  being  paid,  the  others  become  null. 


DR  '^X'^^ 

«1,080  00.  ^  c4  Boston,  December  25,  1849. 

Sixty  days  after  sight,  pay  to  the  order  of  Henry  Austin,  one  thou- 
sand and  eighty  dollars,  value  received,  and  charge  the  same  to  our 
account.  J^  .-^  T.  Perkins  &  Co. 

To  Thos.  Blanchard,  New  York. 


DlLVFl    .\r  8IGHi 
A^..^  ni  action  cl  Apl.  11) 

•310  oijQ^  ^.  New  York,  April  14,  1850. 

At  sight,  without  grace,  pay  to  the  order  of  Blanchard  &  Marsh, 
three  hundred  dollars,  value  received,  and  charge  the  same  to  our  ac- 
count, p  Oliver  Otis  &  Co. 
To  Irvine  Fisher,  Esq.,  New  York. 


AN  0R15eR. 

S288  0|ioo  New  York,  March  2,^  185a 

Messrs.  Blanchard  &  Marsh  will  please  deliver  to  the  order  of 
W.  Blakeley  such  goods  as  he  may  choose,  to  the  amount  of  two  hun- 
dred  and  eighty-eight  dollars,  and  charge  the  same  to 

Charles  Lawrence. 


»l 


188 


MERCANTILE  FORMS. 


Account-Sales   of  Invoice  of  Fruit  received  per  Brig  " Clio,"  sold 
by  order  and  for  account  of  Joseph  De  Nones,  Cadiz. 


18SC. 

Mar. 


ti 

it 

it 

it 
tt 


3 
3 

4 

4 

4 
9 
9 

10 
10 
10 


100  boxes  Lemons,       at  $3.00,  cash $300  00 

52  boxes  Oranges,  3.00      "    156  00 


$   456 '  00 


25  boxes  Oranges, 
^Oji 


jars     Olives, 


100  boxes  Oranges, 
25  boxes  Lemons, 
25  boxes  Oranges, 

150  boxes  Lemons, 
110  boxes  Oranges, 
220  jars     Olives, 


3.00,  60  days. 
.50  60     " 


3.00,  cash 

3.00,  90  days. 
3.00  90     "    . 


5.00,  cash 750  00  ; 

3.80      "    418  00 

.50      "    110  00 


.     75 

00 

.   100 

00 

« 

.     75 

00 

.     75 

00 

Sold  at  auction 1,278  00 

Auctioneer's  commission  3^  °|o 44  73 


175    GO 

300 ,  00 

I 
150    00 


10    4000  jars  Olives at  .50,  4  mos. 


Charges. 


Duties  and  permit $340  00 

Freight  and  primage 108  00 

Cartage  and  labor 12  00 

Refunded  for  damages 55  00 

Storage  and  advertising 52  24 

Commission  on  $4,314.27,  at  5  o|o 215  71 


Net  proceeds,  due  May  25,  '50 


1,233  27 
2,000  00 
4,314    27 


782 


96 


3,531    32 


•  - 


E.E. 

New  York,  March  14, 1850. 

Blanchard  &  Marsh, 
Per  John  Sims. 


•  Note. — The  sales  in  this  account  being  made  on  different  temu 
and  at  different  times,  a  calculation  is  necessary  in  order  to  ascertain 
when  the  net  proceeds  will  be  due :  the  account  must  be  averaged. 
I    The  calculation  will  be  found  among  those  under  the  head  of  Equa- 
tion of  Paymenttf  at  the  end  of  the  book— example  5. 


li 


MERCANTILE  FORMS. 


189 


Account-Sales   of  1,300  barrels  Flour,  sold  by  Blanchard  &  Marsh, 

in  joint  account  with  PaulHarris.  " 


1880.'  i 

Mar.  23    500  barrels  Flour, 
"      26    400 


"      27     200       " 


it 
tt 


28 


fl  ?  • 

at  $6.00,    cash S3,000  00 

6.00,     60  days 2,400.  00 

6.00,    60     "     ..$500  00  i 

Cash 700  00^  1,200  00 


200 


« 


« 


3  months 


1,250    00 


Charges. 


7,850    00 


I 


Storage  on  1,300  bbls.  1  mo.,  at  3  cts $  39  00 

Commission  on  $7,850,  at  21  o|o 196  25  235    25 

Net  proceeds,  due  May  3,  '50 7,614    75 

■  I  ' 

Of  which  your  half  is  (due  May  3,  '50) 3,807    37 


E.  E.  t 

New  York,  March  30,  1850. 


Blanchard  &  Marsh, 
Per  John  Sims. 


Note — ♦The  calculation  required   to  average  this  Account-sales,! 
to  ascertain  at  what  date  the  net  proceeds  will  fall  due,  will  be  found, 
among  the  "Calculations,"  at  the  end  of  the  book — example  4. 
t  Errors  excepted. 


I.  i 


i'  i 


I   '< 


■I 


190 


1850. 

Jan. 
March 


u 


Dr. 


MERCANTILE  FORMS. 


Charles  Lawrence   in  Account 


5      To  Balance  due  C.  C.  Marsh 

2      To  your  draft  at  sight,  in  favor  of  William 

Blakeley 

To  Merchandise,  per  bill  rendered 


I 


S    140'  00 


1850. 

April        iO      To  Balance 


Note.— The  above  is  an  Account-curpent  of  the  most  dmplei 
claas,  being  withoat  interest  It  is  made  out  from  the  Leger,| 
referring  by  the  dates  to  the  entries  in  the  Day-Book,  for  such  I 
explanations  of  the  snms  as  may  be  thonght  necessary. 


388 


00 


175    00 


603    OC 


$    165    00 


MERCANTILE  FORMS. 

t 

ClT/tRENT    WITH    BlANCHARD     &    MaRSH. 


191 


Cr. 


A,... 


1850. 

Feb.         12  :    By  our  draft  at  sight,  in  favor  of  Haven  &  Smith      $  140  00 

"          27  !   By  Merchandise,  per  bill  rendered 288  00 

March       7      By  allowance  on  bill  of  4th  inst ^  10  00 

JJy  JJaiuliCC  - 

^  603  00 


E.E. 

New  York,  Apl.  30,  1850. 


In 
If 

r'l 


^1 


ii 
t-l 


'id 


192 


D&. 


MERCANTILE  FORMS. 


Charles  Lawrence   in  Account 


I- ' 


I 


1850. 

Jan. 


09 

Q 


.T»r'^' 


INT  ST.    1 1     AMOrNTS. 


5 


Mar.     2, 


•*' 


Apl. 


To  Balance  due  C.  C.  Marsh 115  $  2  68     $    140    00 

To  Merchandise,   per  your  draft  atj          ii  ,  j| 

sight,  in  favor  of  W.  Blakeley  . .  59  2  83 

To  Merchandise,  per  bill  rendered.. '  57  1,  42 


30     To  Balance  of  Interest,  at  6  ^|o 


1850. 


Apl.    30    To  Balance 


Note. — The  purchases  and  sales  of  merchani 
disc  in  the  above  account-current  are  supposed 
to  be  without  credit  or  time;  consequently  w0 
count  the  days  from  the  dates  of  the  purchased 
and  sales  up  to  the  day  on  which  we  make  thd 
account  (April  30).  Great  care  must  be  takea 
not  to  calculate  interest  where  it  is  not  owed. 
If  a  sum  is  not  due  on  the  date  of  the  entry,  th9 
explanation  should  show  when  it  is  due. 

Error  in  the  above  intrest  of  24  cts. 


288     00 
1751  00 
2,  07 


6    93 


605    07 


$    167    07 


( 


MERCANTILE  FORMS. 


Current  with  Blanchard   &  Marsh. 


193 


Cr. 


^ 


DATllS. 


Vi 
< 


INT  ST. 


AMOUNTS. 


issof 

Feb.i  li\    By  our  draft  at  sight,  in  favor  of  Ha 

ven&  Smith 77      $  1    80     $    14( 

( 

^7    By  Merchandise,  per  bill j     62 

t.    7    By  allowance  on  bill  of  4th  inst '     54 

Apl    JO    By  Balance  of  Interest. 


Ma 


Apl. 


By  Balance  due  lini  udle 


E.  E. 


New  York,  Apl.  30, 1850. 


25 


2    9 
0 
2    07 


1 


6    93 


2Si 
1( 


1G7 


60(     07 


00 
00 
00 

07 


IM 


W 


1  ''■ 


I 


Da, 


MERCANTILE  FORMS. 


Cheist*-  C.  Marsh  in  Account 


j;ATr.«. 


It60. 


I 


Jan.  1    5     To  your  Note  in  favor  of  T.  P.  Cope 

j         &  Son,  due  Jan.  30, 1850 

Mar.^  25    To  Cash 

Apl.    30     To  Balance  of  Interest 


<i 


0 


To  Bdance 


New  York,  Apl.  30, 1850. 


Note. — An  Account-current  is  a  statement 
which  we  often  have  occasion  to  render  to  per- 
Bons  with  whom  we  have  heen  doing  business. 
It  is  intended  to  explain  to  the  person  to  whom 
it  is  rendered,  how  his  account  stands  in  our 
books,  and  to  show  what  balance  is  due  him  or  u. 


Ji\T  ST. 


AMotiNTS. 


90  '  18  45 
36  1  80 
297    69 


,230    00 


MERCANTILE  FORMS. 


CUKRENT  WITH  BlaNCHARD  &  MaRSH. 


195 


Cr. 


DATES. 


1850. 

Jan.;     5j   By  Cash. 


M 


tt 


115 


yvT  c 


230'   00  '$12000    00 


57'     25 


37       2,670    00 


Apl.'   30 


5     By  Oliver  Otis  &  Co.'s  acceptance, 

due  March  4, 1850 

By  Merchandise 115      59    89       3,125    00 

5     By  Charles  Lawrence's  balance  of 

account 

By  Balance  of  Interest  at  6  ®|q 


115 


68 


*I8C     I 

ApL  30|  By  Balance 


317 


140  00 

297  69 


9^ 


There  are  three  ways  of  making  out  these  ac- 
counts,  which  are  used  according  to  circumstan- 
ces:— 

1st  A  simple  statement  of  the  account,  toitkout 

interest. 
2d.  A  statement  of  the  account,  with  interest 

calculated  on  each  sum. 
3d.  A  statement  of  the  account,  showing  by  aV' 

erage  when  the  balance  was  or  will  be  due. 

The  above  account  belongs  to  the  second  clasa 
It  is  made  out  for  one  of  the  partners,  in  order  to 
ascertain  the  amount  of  interest  on  his  capital, 
under  the  supposition  that  the  partners  were  to 
be  allowed  interest  on  their  respective  capitals. 

The  balance  of  interest  in  this  account  ($297.69) 
is  carried  to  the  Day-Book  (Apl.  30),  journalized, 
and  posted  to  the  accounts  in  the  Leger.  The 
account  of  the  other  partner,  when  made  out,  will 
•how  a  balance  of  interest  of  $493.66. 


18,232i.  69 


16,7021    69 


I 


( 


.96 


Dr. 


MERCANTILE  FORMS. 


Paul  Harris  in  Account 


Ji^A'frS.    i 


1S90. 


Jan.  8  To  Merchandise,  at  60  days,  per  bill 
rendered,  due  March  12,  '50 .... 

Mar.  20  To  Cash,  paid  your  J  bill  of  Flour  in 
joint  account 

Apl.    30     To  Balance  of  Interest  in  red 

•«  i  30    To  Balance  of  Interest 

,       30  '  To  Balaiico  due  tliis  t]nu- 


E.  E. 

New  York,  Apl.  30,  1850. 


NoTK. — Tlie  above  balance  of  interest  (fe.eT) 
ia  carried  into  the  DayBook,  but  journalized  and 
posted  wrong  in  order  to  afford  an  exami>lc  of 
correcting  a  class  of  erron  that  recjuire  Day 
Book  and  Journal  entries  to  correct  them.  The 
correction  in  this  case  is  made  by  tlie  last  entrj 
under  date  of  May. 


en 


49 


41 


int'st. 


.^MOUNIS. 


$  2    65     $    325    00 


13    67 

1       90,: 

6    67 


2,000    00 


24    89 


7  32(>:  M 


I        I 


MERCANTILE  FORMS. 


Current   with   Blanchard   &  Marsh. 


197 


Cr. 


TIATES 
1890.    I 

Jan.    21     By  your  Note,  at  60  days  from  8th, 

due  March  12, 1850 

Mar.   18    By  Cash ;  43 

By  our  J  bill  of  Flour  in  joint  ac-  I 
count  with  you !  40 

By  your  ^  net  proceeds  of  sales  in  \ 

joint  account,  due  May  3,  '50 j     ;j 

By  Balance  of  Interest,  at  6  °|o 


IXT  ST. 


AMOUNTS. 


4< 


4« 


21 


30 


49      $  2  i65     $    325 

4    33        2,000 

il 
91        1,187 


Apl.    30 


1850. 


Apl.    30    By  Balance 


Note. — The  above  account  shows  a  sum  on 
the  credit  ($3,807..37)  which  is  not  due  until 
May  3d,  being  3  days  after  the  date  on  which 
we  make  the  account — April  30;  the  interest 
on  which,  therefore,  must  belong  to  the  debtor 
side.  When  such  is  the  case,  we  must  calculate 
the  interest  from  now  until  the  time  the  sam  if 
die,  and  write  the  days  and  interest  in  red  ink; 
and  before  adding  the  interest  columns,  we  must 
make  an  entry,  on  the  debtor  side,  of  the  red-ink 
interest. 


24 


90 


3,807 
6 


89 


00 
00 

50 

37 
67 


7,326  54 


S5,001  54 


i 

J 
i 


*-ii 


i 


h 

i 


fl 


198 


Dr. 


MERCANTILE  FORMS. 


Paul  Harris   in   Account 


1850. 

Jan. 


I          ■  w       \ 

8      To  Merchandise,  at  60  days,  per  bill  rendered. .  $    325    00 

March     20      To  Cash,  paid  for  your  J  bill  in  joint  account . .  ''    2,000    00 

^^      ■  ■                        ijalance  due  Apni  zz^  icjou . .                         .  4,91)4     67 


7,S19 


E.  E. 


New  York,  April  30, 1850. 


87, 


Note.— The  above  is  an  Account-current  averaged.  The  one 
TO  the  two  preceding  pat^es  ia  the  same  account  made  up  with 
interegt. 


MERCANTILE  FORMS. 


Current  with  Blanchard   &  Marsh. 


199 


Cr. 


1850. 

Jan. 


3*.- 


I 
121      By  your  Note,  due  March  12, 1850 $    325    00 

March     18     j By  Cash '12,000    09 

"  21      By  our  ^  bill  in  joint  account  with  you 1,187    50 


M 


1R50. 


it 


30      By  your  J  net  proceeds  of  sales  in  joint  account 
due  May  3,  1850 


! 

3,807    37 
7,319    j37 


April       30      By  Balance  due  April  22,  1850 ,  i4,994    87 


30      By  Interest  from  April  22  to  date — 8  days , 


Note. — The  above  account,  and  the  preceding,  are  accounts, 
current  made  out  for  the  same  person,  with  a  view  to  exemplify 
two  of  the  common  methods  of  drawing  off  an  account-current, 
viz. :  one  with  interest  calculated  on  each  sum,  and  the  other  by 
averaging  to  find  ichen  its  balance  is  due.  The  one  averaged 
shows  a  balance  due  April  22 ;  now  calculate  and  allow  interest 
on  this  balance  from  April  22  to  the  30th  (the  date  to  which  the 
other  account  is  made  up),  and  the  balances  of  the  two  accounts 
will  agree — both  showing  a  sum  due  Mr.  Harris,  at  30th  April, 
of  $5,001.54. 

The  calculation  of  averaging  this  account  will  be  found  under 
the  head  of  Equation  of  Paymentg — example  8. 


6    j67 
5,001    ^4 


^ 


Il 


i  ' 


m 


I 


:^'i 


f 


li 


LETTERS. 


Note. — It  is  necessary  to  preserve  copies  of  all  our  business  letters ;  for  this 
purpose  a  letter-book  is  kept. 

Subjects  of  the  following  letters :  — 

No.  1.  —  Circular  on  commencing  business. 

"    2.  —  On  ordering  Goods. 

**    3.  —  On  consigning  Goods. 

"    4.  —  On  rendering  Account-Sales. 

"    5.  —  On  drawing  a  Draft. 

"    6. — On  rendering  Account-Current,  and  requesting  remittance. 


MERCANTILE  FORMS. 


201 


[CIRCULAR.] 


No.  1. 


New  York,  January  5,  1850. 
Sir  : — 

We,  the  subscribers,  respectfully  announce  to  you  that  we  have 
formed  a  copartnership  under  the  firm  of  Blanchard  &  Marsh,  for 
the  prosecution  of  a  general  commission  and  wholesale  business ;  and 
we  take  the  liberty  of  assuring  you  that  all  business  intrusted  to  our 
care,  shall  receive  from  us,  personally,  prompt  and  faithful  attention. 
Having  friends  and  correspondents  at  numerous  commercial  points,  we 
possess  facilities  not  often  enjoyed  by  new  establishments.  We  ar© 
prepared  to  make  liberal  advances  on  consignments. 

Very  respectfully. 

Your  obedient  servants, 

Blanchard  &  Marsh 

Thomas  Blanchard  will  sign— 
Christr.  C.  Marsh   will  sign — 

Reperences: — 

Messrs.  Moses  Taylor  &  Co New  York. 

**       Thomas  Owen  &  Son "         " 

*•       Trujillo  &  Barreiras "         « 

**      Penasco  Brothers Havana. 

**       Brown,  Shipley,  &  Co. -.Liverpool.  » 

**      Hargos  Brothers Vera  Cruz. 


Ell 


26 


1  Pi 


202 


MERCANTILE  FORMS. 


No.  2 


New  York,  January  5,  1850 


Mr.  Walter  Howard, 

London. 


Dear  Sir  :  Please  accept  our  order  for  forwarding  to  us  per 
first  vessel,  the  annexed  list  of  dry  goods  of  various  patterns  and  of 
good  quality ;  for  the  amount  of  which  you  may  draw  at  thirty  or  sixty 
days*  sight. 

We  contemplate  consigning  to  you,  about  'the  1st  of  February,  an 
invoice  of  rice  and  pearl  ashes,  relative  to  which  we  solicit  advice. 

Having  commenced  a  general  commission  business  (per  our  circular), 
we  beg  leave  to  solicit  your  favors,  and  pledge  our  honors  as  merchants 
for  the  strict  observance  of  your  commands,  and  faithful  performance 
of  our  duty. 

Very  respectfully, 

Your  obedient  servants, 

Blanchard  &  Marsb. 


MERCANTILE  FORMS. 


203 


No.  3. 


Messrs.  Lockhart  &  Arrott, 

New  Orleans. 


New  York,  February  4, 1850. 


Gentn.  :  Enclosed  we  remit  to  you  bill  of  lading  and  invoice 
of  hardware,  amounting  to  $1,822.22,  which  we  consign  to  you  per 
Brig  Franklin,  to  be  sold  for  our  account.  You  will  do  us  the  favor  to 
use  all  possible  despatch  in  making  sales  and  rendering  account. 

"We  wish  you  to  make  returns  for  the  above  in  sea-islands  Cotton; 
you  will  therefore,  without  further  advice,  invest  the  net  proceeds  aj 
soon  as  realized  in  that  article,  selected  with  your  accustomed  intelli- 
gence, and  at  the  lowest  market  price. 

Keep  us  well  informed  of  the  state  of  your  market ;  we  expect  much 
business  in  that  direction,  and  from  the  high  esteem  in  which  we  hold 
your  house,  shall  place  as  much  as  possible  under  your  care,  expecting 
no  less  from  you 

Very  respectfully, 

Your  obedient  servants, 

Blanchard  &  Marsh. 


Iillj 


I 


ill 


204 


MERCANTILE  FORMS. 


No.  4 


New  York,  March  14,  1850. 


Mr.  Joseph  De  Nones, 

Cadiz. 


Dear  Sir  :  Enclosed  you  will  find  account-sales  of  your  con- 
signment of  Fruit,  per  Brig  Clio:  Net  proceeds  due  May  25,  1850, 
$3,531.32.  When  your  Fruit  arrived,  prices  were  very  low,  as  appears 
by  the  first  sales ;  but  a  sudden  demand  arose,  and  we  think  we  studied 
your  interest  by  disposing  of  the  remainder  at  auction. 

We   await  your  further  orders,  grateful  for  those   received,  and 
remain 

Very  respectfully, 

Your  obedient  servants, 


Blanchard  &  Marsh. 


MERCANTILE  FORMS. 


205 


No.  5. 


New  York,  February  25,  1850. 


Mr.  Walter  Howard, 

London. 


Dear  Sir  :  We  have,  under  this  date,  drawn  a  bill  on  you,  at 
twenty  days'  sight,  in  favor  of  Capt.  Caleb  Davis,  for  five  hundred 
pounds  sterling  (c£500  stg.),  which  you  will  please  accept,  and  oblige 

Your  obedient  servants, 

Blanchard  &  Marsh. 


Mr.  Charles  Lawrence, 

Philadelphia. 


^^ 


No.  6. 


New  York,  April  30,  1850. 


Dear  Sir  :  Annexed  we  present  your  account-current,  with  in- 
terest calculated  to  this  date,  showing  a  balance  in  our  favor  of  $167.07; 
for  which  amount,  if  you  find  correct,  please  remit  us  a  sight  draft. 

Very  respectfully, 

Your  obedient  servants, 

Blanchard  &  Marsh. 


V 


206 


MERCANTILE  CALCULATIONS. 


DISCOUNT  AND  INTEREST. 

Interest  is  a  certain  sum  charged  for  the  use  of  money  ;  it  is  always 
calculated  by  the  100.  Six  per  cent.  (6  o|o)  signifies  $6  for  the  use  of 
$100  for  one  year  (or  one  month,  if  so  agreed).  Seven  per  cent.  (7  °|o) 
means  $7  for  the  use  of  $100  during  one  year,  or  7  cents  for  the  use 
of  100  cents  for  a  year.  Therefore,  by  multiplying  any  sum  by  the  rate 
per  cent.,  and  dividing  the  product  by  100,  v^e  obtain  the  interest  on  that 
sum  for  one  year.  And,  having  the  interest  for  one  year,  we  may  take 
of  it — 

for 6  months. 

for 4  months. 

J  for 3  months. 

J  for 2  months. 

1^1  for 1  month. 

Example  1. 

What  is  the  interest  on  $2,000  for  one  year  and  three  days  (the  grace), 

at  6  0 1 0  per  annum  ]  ^,^^  transaction  of  Jan.  28.) 

Note. — To  find  the  interest  on  any  number  of  dollars  for  a  year  is 
the  same  simple  calculation  as  to  find  the  amount  of  any  number  of 
things  at  6  or  7  cents  each  :  2,000  books,  at  6  cents  each,  would  amount 
to  $120 ;  so  the  interest  on  2,000  dollars  for  one  year,  at  6  cents  each, 
would  amount  to  $120. 

Rule  (for  years).  Multiply  the  sum  by  the  rate  per  cent,  (here  it  is  6), 
and  divide  by  100 ;  the  quotient  will  be  the  interest  in  dollars,  if  the 
original  sum  be  dollars,  but  if  the  original  sum  be  dollars  and  cents,  the 
quotient  will  be  the  interest  in  cents. 

$2,000 

6 

- 

$120,00  Interest  for  one  year,  one  hun- 
dred  and  twenty  dollars. 

Rule  (for  days).  Multiply  the  sum  by  the  number  of  days,  and  divide 
the  product  by  6 ;  the  quotient  will  be  the  interest  in  mills,  or  in  hun- 
dredths of  mills  if  the  sum  be  dollars  and  cents. 

$2,000 
3 

Divisor  6)6,000 

$1>00,0  Interest  for  3  days,  1  dollar. 

Cut  off  one  figure  for  mills,  and  two  for  cents ;  the  rest  will  be  dollars. 
The  interest,  then,  on  $2,000  for  3  days  is  $1.00,  and  for  one  year  and 
3  days  $121.00. 


1! 


m 


I  . 


MERCANTILE  CALCULATIONS. 


2fyr 


* 

Example  2. 
What  is  the  interest  on  $1,080  for  26  days,  at  6  o|o  per  annum  ? 

(From  tranaaction  of  Feb.  2.) 

$1,080 
26 

6480 
2160 


Divisor  6)28080 


4,68,0  Interest  for  26  days,  $4.68. 


Example  3. 
What  is  the  interest  on  $250  for  33  days,  at  6  °\q  per  annum  ? 

(From  transaction  of  Feb.  13.) 

$250 
33 

750 
750 


Divisor  6)8250 


1,37,5  Interest  for  33  days,  $1.37J. 


Example  4.   • 

What  is  the  interest  on  $3,469.32  for  25  days,  at  6  o|o  per  annum  ? 

(From  4th  transaction  of  Apl.  30.) 

$3,469.32 
25 

1734660 
693864 


Divisor  6)8673300 

14,45,5,50  Interest  in  hundredths  of  mills— 
equal  to  $14.45. 

Although  the  rate  of  interest  may  vary  from  6  ^l^,  this  method  can 
still  be  used.  First  find  the  interest  at  6  per  cent.,  as  in  the  preceding 
examples,  and  then — 

Add ^  of  itself for  7  per  cent. 


1 
-•5 


(< 


<( 


(( 


(( 


Thus— 


Add 
Add 

Add....|- 
Subtract  i 
Subtract  J 

Divide  by  6) $14.45  Interest  at  6  o|o— (Example  4.) 
2.41         "       at  1  ojo 

•     16.86         "       at7»lo 


8  per  cent. 

9  per  cent. 
10  per  cent. 

5  per  cent. 
4  per  cent. 


Note. — This  method,  of  multiplying  by  the  days  and  dividing  by  6, 
although  generally  used,  is  not  exactly  correct ;  it  gives  y^j  part  more 
than  the  exact  interest,  because  the  rule  supposes  a  year  to  be  360  days. 


i;i     t    I 


208 


MERCANTILE  CALCULATIONS. 


The  error  is  corrected  by  deducting  ^\  (about  U  cents  on  each  dollar 
ot  interest)  of  the  interest  so  found,  from  itself.     Thus,  in  Example  2— 


The  interest  is 
Which  divide  by  73 


$4.68 
6 

4.62  exact  interest. 


Note  2.— The  divisor  "6000,"  or  "6,"  is  used  in  calculating  interest 
tor  days  at  6  per  cent.,  on  account  of  the  facility  it  gives  in  dividing  by 
so  simple  a  number;  but  it  does  not  follow  that  7  is  the  divisor  for  in- 
terest at  7  per  cent.,  nor  5  for  5  per  cent. 

The  divisor  6000  is  found  thus :  When  we  compute  interest  for  one 
year  at  6  per  cent.,  we  always  multiply  by  6  and  divide  by  100:  there- 
fore, dividing  by  360  times  100  (36000)  will  give  the  interest  for  one 
day ;  and  in  order  to  save  multiplying  by  6,  we  divide  by  1  of  36000. 
which  IS  6000— multiplying  by  6,  and  dividing  by  36000,  produces  the 
same  result  as  dividing  by  6000.  If  we  divide  any  sum  by  6000  we 
obtain  the  interest  on  it  for  one  day  at  the  rate  of  6  per  cent,  per  annum 
and  that  interest  multiplied  by  any  number  of  days,  will  be  the  interest 
tor  that  number  of  days;  but  to  avoid  a  loss  in  fractions,  we  multiply 
nrst  and  divide  after.  ^  "^ 


COMMISSION. 

Commission  is  a  sum  charged  by  a  person  for  doing  business  for 
another—for  buying   or   selling   goods,    collecting   or  paying   money. 

Commission  is  always  calculated  by  the  100,  and  has  no  reference 
whatever  to  time.  5  per  cent,  signifies  $5  for  every  100,  or  5  cents  on 
every  100  cents,  or  5  cents  for  every  dollar.  The  calculation  is  the 
same  that  is  required  to  find  the  amount  of  any  number  of  articles  at 


2^  or  5  cents  each. 


Example  1. 


What  is  the  commission  on  S2,S05,  at  2 J  per  cent.  ?     (Or,  what  will 

2,805  books  amount  to,  at  2  J  CtS.  each  ?)  (From  transaction  of  Feb.  20.) 

Rule.  Multiply  the  sum  by  the  rate  per  cent.,  and  divide  the  product 
by  100— that  is,  if  the  sum  be  dollars,  cut  off  two  right-hand  figures;  if 
the  sum  be  dollars  and  cents,  cut  off  four. 

$2805 
2i 


5610 
1402  J. 


$70.12 j  Commission  on  $2,805,  at  2J 


MERCANTILE  CALCULATIONS. 
Example  2. 


209 


What  is  the  commission  on  $4,314.27,  at  5  per  cent.  ? 

(From  transaction  of  March  14j 

$4314.27 
5 

215,73,35  Commission,  $215.73. 


•      INSURANCE. 

Insurance  is  a  sum  charged  for  guarantying  the  safety  of  property 
from  the  dangers  of  sea  or  of  fire.  In  case  the  property  insured  is  lost, 
the  insurers  pay  the  value  that  it  was  insured  for,  to  the  holder  of  the 
policy. 

A  policy  of  insurance  is  a  certificate  or  agreement  which  one  receives 
from  an  insurance  company,  when  he  gets  property  insured. 

Insurance  is  calculated  by  the  100,  in  the  same  m^anner  as  commission. 

Example  1. 
What  is  the  insurance  on  (or  the  premium  for  insuring)  $2,805,  at 


3  per  cent.  ? 


$2,805 
3 


(From  transaction  of  Feb.  20.) 


84.15  Premium  of  insurance,  $84.15 
=^^  Charge  for  the  policy,         1.00 

85.15 


It  is  customary,  in  insuring  shipments,  to  insure  for  10  per  cent,  more 
than  the  cost  of  the  goods  at  the  place  where  they  are  shipped. 

What  are  called  ojjcn  policies  are  given  by  insurance  companies  to 
those  who  have  frequently  to  get  shipments  insured.  An  open  policy  is 
a  policy  larger  than  the  common,  on  which  entries  of  property  insured 
are  made  from  day  to  day.  A  note  is  given  to  the  insurance  company 
for  a  supposed  amount  of  premiums,  and  when  the  note  becomes  due, 
the  amount  of  premiums  is  ascertained  and  deducted  from  the  amount 
paid  for  the  note,  and  the  balance  returned  to  the  holder  of  the  policy. 


EXCHANGE. 

Exchange  treats  of  the  values  of  different  moneys,  and  of  changing 
sums  of  one  kind  of  money  to  another  kind  without  altering  their  values. 

In  some  cases,  foreign  money  should  be  calculated  at  its  par  or  in- 
trinsic value ;  in  others,  at  a  premium,  or  at  a  discount. 

The  importer  of  an  invoice  of  goods  changes  the  amount  of  the  in- 
27 


4 


210  MERCANTILE  CALCULATIONS. 

voice  into  his  money  at  flie  par  value,  and  credits  the  person  from  whom 
he  received  the  goods  for  the  same.  But  if  he  buys  a  draft,  or  bill  of 
exchange,  by  which  to  make  a  remittance,  he  may  then  pay  more  or 
less  than  the  par  value  of  the  sum  for  which  the  bill  is  drawn  :  this  more 
or  less  is  the  premium  or  discount,  which  varies  according  to  the  trade 
between  the  two  places.  This. premium  or  discount  is  called  the  rate 
of  exchange, 

TABLE. 

Nominal  value.    Intrinsic  value. 

dCl  stg.  (20  s.  or  40  sixpences) equals  $4.44,4 S4.84-|- 

1  shilling "  .22,2 24+ 

6  pence "  .11,1 12 

4  8.  6  d.  (or  9  sixpences) "         1.00,0 1.09 

Example  1. 

What  is  the  par  value,  in  dollars  and  cents,  of  dGl.lOO  stg.  ? 

•  (From  transaction  of  Feb.  13.) 

Rule.  Multiply  the  pounds  by  40,  to  reduce  them  to  sixpences,  annex 
two  ciphers,  and  divide  by  9 — the  number  of  sixpences  in  a  dollar;  the 
result  will  be  dollars  and  cents. 

c£1100 
40 

9)44000.00 

$4,888.89  —  value  of  «£  1,1 00  stg.,  at  the 
—  nominal  par  value. 

Note. — The  present  true  or  intrinsic  value  of  dCl  stg.  is  nearly  $4.84; 
but  the  old  or  former  par  value  ($4.44)  is  generally  used  in  accounts. 
The  $4.44  was  the  par  value  of  a  pound  sterling  previous  to  the  adul- 
teration of  the  gold  coin  of  the  United  States  (1834),  and  that  nominal 
value  continues  in  use,  the  difference  being  made  up  under  the  name 
of  exchange  or  premium.  When  exchange  on  England  is  said  to  be  at 
8  or  9  per  cent,  premium  in  New  York,  it  is  in  reality  only  about  par — 
the  premium  being  calculated  on  the  $4.44,  the  former  value,  instead 
of  the  present. 

Example  2. 

What  is  the  value  of  ^£20..  10.. 6,  in  dollars  and  cents,  at  par  I 

Rule.  Reduce  the  sum  to  sixpences,  add  two  ciphers,  and  divide 
by  9.     Thus— 

oe20 ..  10  ..  6 
40 

800 — sixpences  in  c£20. 

20—        "         in  10  s. 

1 —        "         in    6d. 

9)821.00  ♦ 

$91.22 


i  x 


MERCANTILE  CALCULATIONS.  ti\ 

Example  3. 

What  is  the  amount  of  a  bill  of  exchange  drawn  for  <£500  stg.,  at 

8  0 1 0  premium  %  ^,^^  transaction  of  Feb.  25.) 

Rule.  Calculate  the  value  at  par,  as  in  example  1,  and  then  add  the 
premium. 

oCSOO 
40 


W 


9)20000.00 

^i^'^^.'i^  Value  at  par.  .$2222.22 
177.78  Premium.  8 


$2400.00  Ans. 


117,17.76 


Example  4. 


I  wish  to  invest  exactly  $3,650,  funds  in  my  hands  belonging  to  a  cor- 
respondent, in  a  draft  on  New  Orleans ;  for  what  amount  sliould  the 
draft  be  drawn,  supposing  the  exchange  at  3  per  cent,  discount,  to  cost 
that  sum  1 

Rule.  Multiply  the  sum  to  be  invested  by  100,  and  divide  by  the 
number  of  cents  you  allow  for  $1. 

$3650 
100 

97)  365000  ($3762.88  Amount  of  the  draft. 
112.88  Discount,  3  ^L  off". 


3,650.00  Cost  of  the  draft. 


Example  5. 

The  party  that  sold  the  above  draft  on  New  Orleans  for  $3,762  SS,  at 
3  per  cent,  discount,  made  merely  this  calculation: — 

$3762.88 

3  per  cent,  discount. 


Dis.  on  the  draft  $112.88. 


112,88,64  discount. 


Example  6 

I  wish  to  invest  exactly  $5,000  in  a  bill  of  exchange  on  Liverpool ; 
for  what  amount  will  the  bill  be  drawn,  to  cost  that  sum — exchange  at 
9  ®|o  premium  ? 

Rule.  Multiply  the  sum  to  be  invested  by  100,  and  divide  by  100 
with  the  premium,  annexing  two  ciphers  to  obtain  cents;  or,  divide  by 
the  amount  which  you  give  for  $1. 

100     $5000 
9  •    100 

109   )  500000  ($4,587.15  ^»*.  in  dollars  and  cents. 


i 


.j4 


1. 


t 


9i 


212 


MERCANTILE  CALCULATIONS. 


Now  change  the  $4,587.15  to  sterling :  Multiply  by  9  and  divide  by  4w 

$4587.15 
9 


40)41284.35 


dG  1032, 11       Pounds  and  hundredtns. 
20 


dei032..2..2.  Ans. 


8.       2,20     Shillings  and  hundredths, 
12 

d.      2,40     Pence  and  hundredths. 


Example  7. 

Imported  invoice  of  goods  from  Havre,  amounting  to  12,750  francs ; 
for  what  amount  shall  I  credit  the  shipper  in  dollars  and  cents  ? 

Rule.  Multiply  the  francs  by  the  par  value  of  a  franc — 18f  cents. 

Fr.  12,750 


18| 


102000 
12750 

2295.00 
76.50 


Fr.  12,750 
3 


5)38250 
76.50 


$2,371.50  Ans, 


Example  8. 

Bought  a  bill  of  exchange  on  Havre  for  the  amount  of  ihe  above  in- 
voice (12,750  francs), 'exchange  at  fr.  5.30 ;  what  shall  I  pay  for  the  bill, 
in  dollars  and  cents  ? 

Rule.  Divide  the  amount  of  the  bill  by  the  number  or  francs  and 
hundredths  allowed  for  $1,  annexing  ciphers  to  obtain  cents. 

5.30)  12,750.00,00  ($2,405.66  Ans. 

Note. — Tt  will  be  seen,  by  comparing  this  with  the  preceding  ques- 
tion, that  when  the  exchange  on  France  is  at  fr.  5.30,  it  is  at  a  premium; 

because—  i2,750  francs,  at  fr.  5.30,  make  $2,405  66 

12,750       "       atpar(18f)    "       2,371  50 

Loss  by  exchange 34  16 

Example  9. 

Bought  a  bill  of  exchange  on  Paris,  drawn  for  14,062.73  francs — ex 

change  at  fr.  5.32  per  dollar ;  what  will  it  cost  ? 

(From  transaction  of  April  30.) 

Rule.  Divide  the  amount  of  the  bill  by  the  amount  of  French  money 

allowed  for  $1,  which,  in  this  question,  is  ^^5^  fr. 

5.32  )  14,062.73.00  ( $2,643.58  Ans. 


MERCANTILE  CALCULATIONS.  213 

Example  10. 

I  wish  to  invest  $4,987.50  in  a  bill  of  exchange  on  Havana — exchange 
at  li  per  cent,  discount ;  what  amount  will  the  bill  be  drawn  for,  allow- 
ing me  }  per  cent,  commission  for  buying  the  bill  ? 

(From  transaction  of  April  30.) 

Instruction.  Divide  the  amount  to  be  invested  by  the  number  of 
cents  allowed  for  $1  (98^  cts.  are  allowed  for  a  dollar).  If  the  exchange 
be  li  o|o  discount,  for  every  98^  cents  we  get  a  dollar  in  the  bill. 

But  as  we  charge  i  per  ct.  commission,  we  add  that  to  the  98  J,  which 
makes  the  divisor  98J. 

.98.75  )  4,987.50,00,00  (  $5,050.63 

The  bill  will  be  drawn  for $5,050  63— which, 

At  li  per  cent,  discount 75  75 

Will  cost 4,974  88 

Add  our  commission,  at  |-  °|o 12  62 

Making  the  sum  we  wished  to  invest 4,987  50 


EQUATION  OF  PAYMENTS. 

Equation  of  payments,  or  averaging,  is  a  calculation  to  ascertain  at 
what  date  several  sums,  due  at  differeut  dates,  maybe  paid  in  one  payment, 
so  that  neither  payer  nor  receiver  may  gain  or  lose  in  time  or  interest. 

An  equation  of  payments  is  proved  by  a  calculation  of  interest;  for 
the  interest  on  the  sums  due  before  the  average  date,  should  equal  the 
interest  on  the  sums  due  after. 

The  following  examples,  it  is  believed,  embrace  all  the  different  cases 
of  averaging — beginning  with  the  simplest. 

Example  1. 
Sold  merchandise  to  Mr.  Austin  as  follows ;  when  is  the  amount  due  1 

Ans.  May  21. 

May  6,  bill  of $50  00 

"      9       "       75  00 

"    15       '        80  00 

"    27       «       120  00 

"    30       "       150  00 

Rule  1.  To  find  the  average  date  of  the  preceding  bills :  Multiply 
each  sum  hy  the  number  of  days  from  its  date  to  the  date  of  the  first 
sum,  and  divide  the  amount  of  the  products  hy  the  amount  of  the  sums. 

Thus — 

$50  X  0  =  0 

75  X  3  =  225 

80  X  9  =  720 

120  X  21  =  2520 

150  X  24  =  3600 

475  -r-         )7065(15daysafter  May  6. 


i 

I 


i 


1*1 '. 


214 


MERCANTILE  CALCULATIONS. 


If  these  sales  to  Mr.  Austin  were  at  6  or  4  months*  credit,  the  4  months' 
credit  on  the  total  would  begin  at  May  21. 

Example  2. 

Sold  merchandise  to  Mr.  Harris  as  follows ;  when  is  the  total  due  t 


Calculation. 
May  10,  bill  of $40  00    x      0   = 

5  = 


"     lo 

"     27 

"     30 

June    6 

"     20 

"     25 

0 

65  38  X  5  =  325 

90  50  X  17  =  1,530 

120  40  X  20  =  2,400 

50  20  X  26  =  1,300 

110  90  X  40  =  4,400 

148  00  X  45  =  6,6(50 

S25  38 


625 )  16,615  ( 26  ds.  after 

May  10. 

The  total  falls  due  June  6,  that  being  26  days  after  May  10.  BiU  if 
there  had  hcen  a  credit  of  i  or  Q  months  on  these  bills  of  goods,  then  the 
credit  would  begin  on  June  6,  and  the  amount  be  due  4  or  6  months  after 
that  date. 

Example  3. 

Sold  merchandise  to  Mr.  Sims  on  the  following  dates  and  credits; 
when  will  the  amount  be  due  ? 


July    1,  bill  at  3  months, 


<( 


5 
10 

20 

Aug.  10 

"     20 

Sept.  15 


<( 


It 


a 


(( 


(< 


<< 


<( 


it 


it 


4 
4 
6 
3 

60  days, 
90 


It 


It 


it 


it 


500 
500 
1500 
200 
100 
250 

3450 


Calculation. 

X  94  =  37,600 

X  128  =  64,000 

X  133  =   66,500 

X  203  =304,500 

X  133  =  26,600 

X  113  =   11,300 

X  168  =  42,000 


^         552,500  ( 160  ds.  after 
=  ==      July  1. 

This  case  differs  materially  from  Examples  1  and  2,  because  the 
sales  are  on  different  terms — one  being  at  4  months,  another  at  3 
months,  &c. 

Rule.  Multiply  each  sum  by  the  number  of  days  that  it  will  be  due, 
counting  from  July  1  (the  date  of  the  first  sum),  and  divide  by  the 
amount  of  the  original  sums ;  the  quotient  will  be  the  number  of  days 
after  July  1,  that  the  amount  will  be  due.  The  multiplier  (128)  in  the 
above  calculation  is  obtained  thus  : — 

From  July  1  to  the  5th  call 5  days. 

4  months  call  - . , 120 

Grace  call 3 


(< 


«( 


that  the  S500  has  to  run  before  due. 


128  days  from  July  1, 


MERCANTILE  CALCULATIONS.  215 

Example  4. 

Calculation  of  averaging  the  account-sales  rendered  to  Mr.  Harris, 
March  30,  copied  from  page  189  : — 

Terms.  Calculation. 

March  23 .  ^ cash,       $3,000  x  0  = 

"       26 60  days,   2,400  x  66  =   158.400 

"       27 60  days,      500  X  67  =     33.500 

"       27 cash,            700  X  4  =       2.800 

•                     "       28 3  mos.,     1,250  X  98   =   122.500 

7,850  ^ 

Less  charges 235 

Divide  by  net  proceeds  .    7,615        ~  )  317.200  (41  days  af- 

ter  March  23— equal  to  May  3.  • 

Rule.  Multiply  each  sum  by  the  number  of  days  that  it  wants  of  be 
mg  due,  countmg  from  the  first  date  (March  23),  and  divide  by  the  net 
proceeds ;  the  quotient  will  be  the  number  of  days  that  the  proceeds 
will  fall  due  after  the  date  averaged  from — March  23. 

Example  5. 

Calculation  of  averaging  the  account-sales  rendered  to  Mr.  De  Nones 
— copied  on  page  188  : — 

__  Terms.  Calculation. 

March  3 cash,  S  456    x      0   = 

"       4 60  days,       175    X   64  =   11.200 

"       4 cash,  300    X      1   =       .300 

"       9 90  days,       150    X   99  =   14.850 

"     10 cash,  1,233    x      7   =     8.631 

"     10 4  months,  2,000    xl30  =260.000 

4,314  ^ 

Less  charges 783  ^ 

Divide  by  net  proceeds  .  3,531       -^        )  294.931  (  84  days  af- 
ter  March  3 — equal  to  May  25. 

.Ti^'^'f  •ox^''^^!P^y,^^^^  ^""^  ^y  ^^^  number  of  days  from  the  first  date 
(March  3)  to  the  date  when  it  will  be  due,  and  divide  by  the  net  pro- 
ceeds ;  the  quotient  will  be  the  number  of  days  after  the  first  date 
(March  3)  that  the  net  proceeds  will  be  due. 

Note.— Dividing  by  the  net  proceeds,  as  above,  extends  the  time  in 
proportion  to  the  charges  which  we  consider  due  March  3— the  date  we 
average  from.  But  supposing  the  charges  due  much  before  or  after 
that  date,  we  should  then  multiply  them  by  the  number  before  or  after, 
and  add  the  product  to,  or  deduct  it  from,  the  dividend  to  be  divided  by 
the  net  proceeds.  If  the  charges  were  due  before  the  date  we  average 
from  (March  3),  the  said  dividend  should  be  increased ;  if  after,  de- 
creased. 

If  we  divide  by  the  total  sales,  we  must  put  another  item  among  the 
Charges,  viz. :  interest  on  the  amount  of  the  charges  from  the  date  they 


216 


MERCANTILE  CALCULATIONS. 


average  due  up  to  the  time  the  total  sales  average  due ;  wrhich  method 
is  not  truly  averaging  the  account,  but  averaging  a  part  of  it  and  char 
ging  interest  on  tlie  rest.  *» 

Example  6. 


When  is  the  balance  of  the  follovvinsr  account  due  ? 


Dr. 


John    Sims. 


Cr. 


1850. 

June 


To  amount  due  us  this 
date 


S700  00 


700  00 


ia5o. 
May 


By  amount  due  him  this 

date 

By  Balance  due  Aug.  17 


$500 
200 


700 


00 
00 

00 


Rir\E.  [Always  calculate  from  the  date  of  the  larger  side,  calling  that 
the  debt  and  the  other  side  the  yayment  on  account  of  it.)  Multiply  the 
sum  of  the  smaller  side  by  the  number  of  days  that  intervene  between 
its  date'and  the  date  of  the  larger  .side,  and  divide  by  the  balance  of  the 
account;  the  result  will  be  the  number  of  days  before  or  after  the  date 
of  the  larger  side,  that  the  balance  will  be  due. 

31      days  from  May  1  to  June  1. 
500  fiom  credit  side. 

Balance.  .200)  15,500(77  days  after  June  1 ;  equal  to  Aug.  17. 

For  the  reason  that  the  $500  was  paid  31  days  before  the  debt  was 
due  (June  1),  the  balance  (200)  does  not  become  due  until  77  days  after 
June  1.  Or  thus  :  If  one  pays  $500,  31  days  before  it  is  due,  how  long 
ought  that  to  extend  his  credit  on  $200  ? 

Ans.  |gj  of  31  days,  which  is  77  days. 

9  

Example  7. 

When  is  the  balance  of  the  following  account  due  ? 

Dr.  Cr. 


1850. 

Jan. 
Feb. 
Mar. 
Apr. 

15 
20 
30 
20 

To  Merchandise,  at  6  mos. 
To         "             ate  " 
To         «             ate  " 
To         «            ate  « 

Amount  due  Sept.  2  ;  . 

S500 
300 
400 
300 

1500 

00 
00 

oo; 

OOi 

7o\ 

18.50. 

Mar. 
Apr. 
June 

10 

30 

1 

Bv  Cash 

f200 
300 
500 

1000 
500 

1500 

00 

Bv  Cash 

00 

By  Note  due  Aug.  1  .  . 

Amount  due  June  5  .  . 
Bala7ice  due  Feb.^7\  51 

00 

00 
00 

00 

Average  each  side  of  the  account  separately  (as  shown  in  example  2), 
to  find  when  the  total  of  each  is  due;  the  account  will  then  be  in  situ- 
ation  of  example  6. 


MERCANTILE  CALCULATIONS. 


217 


Rule.  Multiply  the  amount  of  the  smaller  side  by  the  number  of  days 
that  intervene  between  the  day  on  which  it  is  due  and  the  day  on  which 
the  larger  side  is  due,  and  divide  the  product  by  the  balance  of  the  ac- 
count ;  the  qu«tient  will  be  the  number  of  days  that  the  balance  will  be 
due  cfter  or  be/ore  the  date  of  the  larger  side. 

89         days  fr.^m  June  5  to  Sept.  2. 
1,000  amount  of  credit  side. 

Balance . .  500 )  89,000  ( 178  days  after  Sept.  2 ;  equal  to  Feb.  27. 

The  amount  of  the  debtor  side  is  due  Sept.  2 ;  the  $1,000  on  the 
credit  side  was  paid  on  account  of  the  $1,500,  89  days  before  it  was  due; 
therefore  the  balance  of  $500  will  fall  due  179  days  after  Sept.  2.  Or, 
if  $1,000  is  paid  89  days  before  the  debt  was  due,  how  long  ought  that 
to  extend  the  credit  on  the  $500  still  owing  ? 

^«*-  ¥oV  (or  V)  ^^  89  days— equal  to  178  days 


Example  8. 
When  is  the  balance  of  the  following  account  due  ? 
Dr.  Paul  Harris. 


Cr. 


1850. 

Jan. 
Mar. 

Apr. 


8 
20 

30 


To  Mdse.  due  March  12 . 

To  Cash 

Ans. 

To  Balance  due  Apl.  22, 
1850 


1850. 

t325 

00 

Jan. 

22 

2000 

00 

Mar. 

18 

« 

21 

« 

30 

4994 

87 

7319 

87 

— 

By  Note  due  March  12 . 

By  Cash 

By  Merchandise 

By.  net    proceeds    due 
Ma^  3 


#325 
2000 
1187 

3807 


7319 


00 
00 
50 

37 

87 


Average,  separately,  both  sides  of  the  account,  in  manner  of  Exam- 
ple 5.  The  debtor  side  ($2,325)  will  be  due  March  19  ;  the  credit  side 
($7,319)  will  be  due  April  11.  Thus,  then,  we  owe  Mr.  Harris  $7,319, 
due  April  11 ;  on  which  we  have  paid  him  $2,325,  due  March  19 — leav 
ing  a  balance  in  his  favor  of  $4,994.  Now,  as  we  paid  him  $2,325 
23  days  before  what  we  owed  him  was  ducj  it  follows  that  our  credit  on 
the  balance  should  be  extended  in  proportion  as  the  amount  paid  is  to 
the  balance  owed;  that  is — ||U  of  23  days  after  April  11=  Apl.  22. 


PROFITS  AND  LOSSES. 
Example  1. 


Bought  an  article  for  $5,  and  sold  it  for  $6 ;  at  what  rate  per  cent, 
was  the  gain  ? 

Rule.  Multiply  the  gain  or  loss  by  100,  and  divide  the  product  by 
the  cost. 

28 


1 


218  MERCANTILE  CALCULATIONS. 

Gain $1 

100 

Cost 5)  100 (20  percent.  Ans, 

10 
0 
Example  2. 

Bought  50  chests  tea  for  $4,725,  and  sold  the  same  for  S4,866.75  •  at 
what  rate  per  cent,  was  the  p-nin  ?  ^  ' 

^       X.X.IIV.  waa  ixio  ^din  i  (Prom  transaction  of  ApL  Z  i 

Sold  for $4,866.75 

Cost 4,725.00  ^ 

Gain 141.75  / 

100 

4,725.00)  14175.00(3  per  cent,  ^jjin^  Ant. 

Example  3.  ^ 

Sales  of  merchandise  the  last  four  months  amount  to  $24,619;  the 
cost  $21,056 ;  what  per  cent,  is  the  profit  ? 

Sales $24,619  •• 

Cost 21,056  • 

Gain 3,563 

100 

21,056)3563.00(16.92 

Ans.  Sixteen  and  ^^^  per  cent. 

Example  4. 

Sales  of  merchandise  this  year  amount  to  $55,660;  supposing  the 
profits  average  12  per  cent.,  how  much  is  the  gain  ? 

Rule.  Multiply  the  amount  of  sales  by  100,  and  divide  the  product 
oy  100  with  the  rate  per  cent,  added ;  the  quotient  will  be  the  cost 
which  deducted  from  the  sales  will  give  the  gain. 

$55,660 

100    $55,660.00  sales. 

112)55,66000  (    49,696.43  cost. 

ivV  v     i  '       ^ 

-  5.963.57  gain. 

feci 

^ii    'si 


COLUMBIA  UNIVERSITY  LIBRARIES 


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m    4  1925 


END  OF 
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